Front Matter
Author:
Mr. Richard Hemming
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and
Mr. Ali M. Mansoor
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Language:
English
Keywords:
OP; enterprise; public enterprise; public enterprise sector; government; sale
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Abstract

This paper examines the role that privatization can play within a wider strategy designed to overcome the problems associated with public enterprises. For this purpose, privatization is defined as a transfer of ownership and control from the public to the private sector, with particular reference to asset sales. It is therefore equated with total or partial denationalization. Economic efficiency is not only the key to improving the performance of the public enterprise sector, but is also the source of other gains often attributed to privatization, in particular, its favorable budgetary impact. To public enterprises that are subject to national or international competition, privatization offers the possibility of increased productive efficiency as government financial backing is withdrawn and bankruptcy and takeover become possibilities. The admissibility and desirability of privatization, as well as what types of enterprise should be privatized, ought to be determined by similar considerations in both industrial and developing countries.

© 1988 International Monetary Fund

Reprinted January 1992

Library of Congress Cataloging-in-Publication Data

Hemming, Richard.

  • Privatization and public enterprises.

  • (Occasional paper, ISSN 0251-6365: no. 56)

  • 1. Privatization. 2. Government business enterprises. 3. Efficiency, Industrial. I. Mansoor, Ali. II. Title. III. Series: Occasional paper (International Monetary Fund); no. 56.

HD3850.H46 1988 338.9 87-36633

ISBN 1-55775-005-X

Price: US$7.50

(US$4.50 university libraries, faculty members, and students)

Address orders to:

External Relations Department, Publication Services

International Monetary Fund, Washington, D.C. 20431

Contents

  • Prefatory Note

  • I. Introduction

  • II. Public Enterprises and the Economy

    • Objectives

    • Performance

    • Problems

  • III. Privatization

    • Benefits

    • Techniques

    • Experiences and Prospects

    • Problems of Implementation

  • IV. Privatization and Competition Policy

    • Privatization and Efficiency

    • Privatization and Liberalization

    • Competition and Efficiency

  • V. Fiscal Impact of Privatization

    • Asset Sales in Government Accounts

    • Asset Sales and Fiscal Stance

    • Financial Implications of Asset Sales

    • Asset Sales and the Balance of Payments

    • Qualifications

  • VI. Main Conclusions and Implications for Adjustment Programs

    • Privatization and Adjustment Programs

  • References

The following symbols have been used throughout this paper:

  • … to indicate that data are not available;

  • — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;

  • – between years or months (e.g., 1984–85 or January–June) to indicate the years or months covered, including the beginning and ending years or months;

  • / between years (e.g., 1985/86) to indicate a crop or fiscal (financial) year.

“Billion” means a thousand million.

Minor discrepancies between constituent figures and totals are due to rounding.

Prefatory Note

This paper was prepared by Richard Hemming and Ali M. Mansoor of the Fund’s Fiscal Affairs Department, and Joslin Landell-Mills provided editorial assistance. The views expressed are those of the author and do not purport to represent those of the International Monetary Fund.

It should be noted that the term “country” used in this document does not in all cases refer to a territorial entity that is a state as understood by international law and practice. The term also covers some territorial entities that are not states but for which statistical data are maintained and provided internationally on a separate and independent basis.

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Cover Privatization and Public Enterprises
Privatization and Public Enterprises
ISBN:
9781557750051
ISSN:
0251-6365
Publication Date:
15 Sep 1998
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557750051.084
Pages:
27

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