LYCOS RETRIEVER 
Privatization: Efficiencies
built 630 days ago
Privatization of the utility was designed to promote a beneficial result through the free play of market forces. The introduction of competition in power generation, it was argued, would lead both to greater efficiency within the industry and to lower prices for the consumer. Within a few short years... concerns had arisen, as some critics of the scheme had predicted from the start. The creation of three big players holding such a significant majority of the electricity-generating market was never likely to embody the purest form of free market operations.
Source:
There have been numerous empirical studies of privatization programs, which have found efficiency gains to firms, industries, and financial markets in a multitude of developed and developing economies. Central and Eastern Europe and the Former Soviet Union are conspicuously and consistently absent from these studies. Some reasons for this include the lack of reliable and consistent firm data both before and after privatization, the absence of vital business mechanisms and institutions to distribute reliable business information, and misconceptions about what privatization actually is. Given these problems, Stiglitz (1998) offers an interesting solution for measuring the "success" privatization in CEE and FSU. Stiglitz (1998) provides six factors to be considered when assessing the impact of any type of economic reform: economic growth, health, education, infrastructure, knowledge, and capacity-building. Through correlation analysis, financial, economic and social variables representing these six dimensions are reduced to fourteen key variables that describe privatization/economic reform success.
Source:
Borsa Italiana Group, founded in 1997 following the privatization of the stock markets, is responsible for the management, organization, and function of the Italian stock exchange. Borsa Italiana's main goal is to develop financial markets and to maximize their liquidity, transparency, competitiveness, and efficiency. Tags: Security, Oracle Corp., Investment, Databases, Enterprise Software, Finance, Software, Data Management Case studies
Source:
Opponents of privatization dispute the claims concerning the alleged lack of incentive for governments to ensure that the enterprises they own are well run, on the basis of the idea that governments are proxy owners answerable to the people. It is argued that a government which runs nationalized enterprises poorly will lose public support and votes, while a government which runs those enterprises well will gain public support and votes. Thus, democratic governments do have an incentive to maximize efficiency in nationalized companies, due to the pressure of future elections.
Source:
It delves deeper than the question of technical efficiency and growth to set benchmarks that will score privatization from both economic growth and people-centered development points of view. The special interest is on poverty-reduction and gender issues.
Source:
MORE ABOUT
Efficiencies