Determinants of success of national privatization programs.
Item
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Title
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Determinants of success of national privatization programs.
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Identifier
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AAI9432343
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identifier
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9432343
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Creator
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Ioannidis, Anthony.
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Contributor
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Adviser: E. S. Savas
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Date
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1994
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Language
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English
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Publisher
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City University of New York.
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Subject
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Business Administration, Management | Political Science, Public Administration | Economics, General
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Abstract
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This study identifies three sets of variables that affect directly or indirectly the outcomes of a national privatization program: environmental (country-specific and market-specific), policy, and transaction-specific. Privatization success is defined as the achievement of the objectives set by a government engaging in a national privatization program (i.e., economic, financial, social, and political/ ideological).;The empirical model that is developed here assesses the relative importance of each variable in the achievement of twelve specific privatization objectives. Relevant data were generously provided by privatization experts in all five continents through their responses to a self-administered questionnaire. The responding experts, who expressed their perceptions of national privatization programs, were academicians, public officials, private consultants, and staff members of international agencies. The Analytic Hierarchy Process (AHP), a highly-respected importance-assessment method, was utilized for data analysis.;Seventeen propositions on the relationships between privatization objectives and policy and transaction variables were tested. The research results support all of them. The main conclusions drawn are that: (1) Policy variables (e.g., the choice of state-owned enterprises to be privatized, the choice of potential buyers, the structuring of the total privatization process) are far more important than environmental and transaction variables in consummating successful privatization programs. (2) Environmental variables affect the privatization objectives both directly and indirectly (i.e., through policy variables). Although these (less controllable) variables have a significant impact on the achievement of some privatization objectives, it is not possible to distinguish the relative strength of their direct and their indirect relationships. (3) Transaction-specific variables (e.g., the level of ownership change in the privatized enterprise, the choice of privatization technique applied, transparency) are of lesser importance (compared to policy and environmental variables); their major impact is on the achievement of the social and political/ideological objectives of privatization.;The study concludes that successful privatization is possible in developing countries to the same degree as in developed countries. The key to success is effective manipulation of the identified policy variables. Strong leadership, organization, political and public support (from opinion leaders and interest groups), and learning from previous policy mistakes are vital prerequisites.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
