IMPLEMENTING PRIVATIZATION POLICY IN DEVELOPING COUNTRIES: A Selected Literature Review

The vast amount of literature on privatization reflects the fact that many developing countries have been pursuing this type of policy in recent years, many at an accelerated rate. Privatization has been pursued worldwide as a response to the demands of fiscal austerity, as fulfillment of international donor conditionality, and as a remedy to the disappointing performance of government provision of certain goods and services. Countries have, for example, sold state-owned enterprises (SOEs), liberalized trade regimes, and/or opened various sectors of the economy to private participation in the provision of formerly public services. For example, between 1974 and 1990, the Chilean government privatized approximately 550 enterprise