Privatization And Equity

The article discusses the problems that privatization can cause, and how to avoid them. It also discusses the importance of equity in privatization, and how to ensure that it is taken into account.

Privatization creates gainers and losers. Increasingly, governments, particularly those in developing countries, are coming to realize that privatization can have a very severe economic impact and raises problems of equity. Yet remedial actions are often inadequate and unsystematic. In Privatization and Equity , the authors look at some of the problems brought about by the change to private ownership. They identify factors which can lead to greater inequality, including changes in market structure, foreign ownership and operating policies. They also highlight the consequences of ignoring considerations of equity. In the short term these can discredit privatization programmes, and in the long term might even see them reversed.