An International Perspective of Privatization: The Need to Balance Economic and Social Performance

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2003-09-03

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Sage Journals

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Based on the results of a review, synthesis, and comparative analysis of existing international data and research, it seems that the role of privatization—as a means of reforming the public sector—has expanded internationally in scope and at such a rapid pace that, in many cases, the importance of objective and balanced measures of its overall effectiveness and impact on the affected communities need to be reexamined. The results of this research reveal that the negative consequences of privatization are often masked or go undetected because the effectiveness of privatization is based primarily on economic performance. I recommend that those responsible for planning of future privatization activities should refocus the present economic emphasis and strive for a balance of economic and social performance to improve long-term benefits for all sectors of the affected communities.

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16 pages

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