Emergent Thinking on Privatization: A Review Analysis

Abstract

In the post-Washington Consensus period since early 1980s,
privatization has taken the centre stage to remodel the traditional
economies of the developed as well as developing countries but
simultaneously this has posed different contextual challenges to
emerging nations in their pursuit of economic growth and social
development. Privatization is desirable for a number of obvious
reasons. The objectives of privatization varying from growth
enhancement to capital accumulation, from integrating the public
sector to global production and investment network that in turn boost
productivity and economic growth. The prime objectives are a dire
need to reduce government debt by the sale of state-owned industrial
and commercial units, to improve their profitability and performance,
and to make the role of government that of a facilitator. Despite some
problems and consequences, these objectives are a prime force to adopt
it as a major macroeconomic level policy in the developed and
developing world.