611. Privatization: The Role of Domestic Business
- Author:
- Ernst Bartell
- Publication Date:
- 06-1993
- Content Type:
- Working Paper
- Institution:
- Kellogg Institute for International Studies
- Abstract:
- A close examination of the links between privatization programs and domestic business, both in theory and in practice, suggests that the relationships are not nearly so vigorous, uniform, or predictable as conventional promotional arguments imply. It will be argued here that the nature of the relationships between privatization programs and the behavior of domestic business depends upon the goals, methods, and financing of specific national privatization programs as well as on the economic and social characteristics of the private sector in a given country and its macro- and microeconomic policy regime. Privatization programs in themselves are likely to be a secondary and transitory influence on the aggregate behavior of national business with somewhat differing effects and responses within individual sectors of those economies with relatively diverse domestic business communities. As a result, privatization programs are likely to be less important to the incorporation of domestic business into a market-driven development process than other components of economic restructuring and liberalization. These conclusions will be examined briefly in light of the historical record of privatization in Chile, Argentina, Mexico, and Brazil and of interview data with business leaders in Brazil and Chile before and after the installation of their current democratic governments.
- Topic:
- Development, Privatization, Business, and Economic Growth
- Political Geography:
- Brazil, Argentina, South America, Central America, Caribbean, Mexico, and Chile