Privatization [antikvár]

Summary The World Bank Group supports privatization in the context of its broader goals of econonuc development and the reduction of poverty.^ An efficient private sector makes essential contributions to the attainment of these goals. Among the means available for promoting private sector development is the privatization of state-owned enterprises (SOEs). Privatization, when correctly conceived and implemented, fosters efficiency, encourages investment (and thus new growth and employment), and frees public resources for investment in infrastructure and sodal programs. Privatization is a complement to, not a replacement for, the other aspects of the development of the private sector in the World Bank's member countries. In many instances privatization will be less important for the growth of the private sector than the emergence of new private businesses. Measures that support free entry by private operators will be crucial in shifting the balance of econonuc activities from the public to the private domain. This book reviews the experience of countries with state-owned enterprises and with the privatization of these enterprises. The main lessons of experience are clear: • Private ownership itself makes a difference. Some state-owned enterprises have been efficient and weU managed for some periods, but government ownership seldom permits sustained good performance over more than a few years. The higher probability of efficient performance in private enterprise needs to be corisidered in choosing whether to invest public funds in SOEs or in health, education, and other sodal programs. • The process of privatization, although not simple, can work and has worked; this is true for a variety of enterprises in a variety of settings, including poor countries. These lessons are already being put into practice. Privatization is widespread and accelerating. More than eighty coimtries have launched ambitious efforts to privatize their state-owned enterprises. Since 1980,