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Why does privatization seem to be more successful in some countries than in others Use some examples of your choice to illustrate your argument - Essay Example

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The world is embracing globalization at a faster rate and as this happens, evidence shows that there is extensive privatization of public enterprises and services (Boulle, 2009). Developed countries were the first to embrace the concept of privatization and subsequently followed…
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Why does privatization seem to be more successful in some countries than in others Use some examples of your choice to illustrate your argument
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Why does privatization seem to be more successful in some countries than in others Use some examples of your choice to illustrate your argument

Download file to see previous pages... As privatization of state-owned enterprises becomes a common phenomenon in the globalizing world, it must be remembered that privatization is not equally carried out among countries. Countries differ as far as privatization is concerned and this has resulted into some countries realizing profound success as compared to other countries. Therefore, different factors interplay and operate in the wider environment with regard to specific country as far as privatization is concerned.
Unsuccessful privatization has largely been associated with developing states as compared to developed states (Boulle 2009). Different varying but common factors have been provided for this. In most states that have realized unsuccessful results with regard to privatization has been associated with political and institutional factors that normally complicate the success of implementing goals of privatization. These political factors are captured in aspects such as corruption; manipulation of regulation agencies; limited technological expertise; and weak auditing, accounting, and tax systems (Boulle 2009). On their part Kikeri, Nellis and Shirley (1994) identify two categories of factors that make privatization successful (Boubakri and Cosset 1999). According to the authors country’s conditions and market conditions combine to dictate the success or failure of any privatization initiative. Accordingly, the country conditions that lead to successful privatization include open trade regime, stable and predictable environment for investment and enhancement of a developed institutional and regulatory capacity (Boubakri and Cosset 1999). On the other hand, market conditions congregate around creation of an environment that is competitive which also promotes efficiency (Boubakri and Cosset 1999). In addition, market conditions need to promote and make it effectively for tradable goods and services to be ...Download file to see next pagesRead More
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