The Financial Economics of Privatization

By William L. Megginson | Go to book overview

11
The Lessons and Future
of Privatization

Privatization has been a part of economic life for a quarter-century now, and seems likely to remain firmly entrenched in the public policy debate for the foreseeable future. What have we learned from this experience, and what lies ahead? Since these questions have been addressed in depth in earlier chapters, we do not attempt a full summary here, but instead provide only a distillation of the key lessons of privatization in the section below. The section after that describes unresolved issues in privatization research. We then close out this work by assessing the likely future course of privatization in the short, medium, and long term.


Lessons Learned from a Quarter-Century of
Privatization Experience

By definition, privatization represents a change in the ownership of business enterprises from state to private hands. It also invariably represents a sharp break with a past where state ownership of business had been deliberately created, so privatization also implies that a society has changed its mind in an important way. After much theoretical and empirical research, it now seems clear that private ownership is superior to public ownership of commercial enterprise in almost all realistic business settings. Thus the first true lesson of privatization is that state ownership of most productive assets must be considered a historical failure, and the policy of privatization has been adopted in order to improve business performance. The other key lessons of privatization are presented and discussed below.


Privatization Works by Itself, but Works Better as Part
of a Reform Program

No fewer than 300 empirical analyses of privatization have been produced over the past 15 years, with most of these being performed quite recently. Collectively,

-388-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Financial Economics of Privatization
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 523

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.