The International Experience with Privatization: Its Rapid Rise, Partial Fall and Uncertain Future

From a triumphant high in the late 20th century, esteem for privatization has significantly declined, post-2000. Politicians and businesspeople alike now take a more balanced view of its effectiveness, recognizing that privatization must happen in a supportive institutional and policy framework if it is to live up to its potential. They have also come to share a better understanding of the sociopolitical consequences – especially with regard to public opinion – that privatization inevitably brings with it. This paper provides a comprehensive examination of this 21st century global shift in perception, with an emphasis on developing and emerging markets. Through a rich trove of case studies, it accounts for why privatization has slowed, analyzing current and past trends from a variety of sectors worldwide. It also offers a thorough analysis of privatization’s effects on economies, societies and the political process, while giving ample space to critics’ views. Although powerbrokers now tend to view privatization warily, there is good reason to believe that, due to the impact of the ongoing global economic crisis on government budgets, its day will come again. This paper, with its impressively detailed and wide-ranging grasp of the phenomenon, is essential reading for academics, policymakers and economists – the individuals who must grapple with privatization’s implications when that day arrives.