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The Contribution of Privatization to Welfare

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  • Irene Fafaliou
  • John Donaldson

Abstract

The primary focus of this work is on the nature of the privatization debate rather than on an attempt to explore the truth or validity of each of the many claims and counterclaims that have been made for the practice of privatization. The main objective is to discover why the issues remain controversial and whether there are prospects for reconciliation. The results obtained from the evidence examined suggest there is no well-formed theory of privatization, and no well-formed opposing theory. In the absence of a convincing theory, the authors conclude they expect the debate to continue on the lines of competition, free markets and choice versus complaints about unfulfilled promises and unexpected costs, corruption scandals and disadvantages to the poor, and suggest possible ways forward. Copyright International Atlantic Economic Society 2007

Suggested Citation

  • Irene Fafaliou & John Donaldson, 2007. "The Contribution of Privatization to Welfare," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(4), pages 461-474, November.
    • Handle: RePEc:kap:iaecre:v:13:y:2007:i:4:p:461-474:10.1007/s11294-007-9111-1
    DOI: 10.1007/s11294-007-9111-1
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    More about this item

    Keywords

    Privatization; Reconciliation; Competition; Free markets; Unfulfilled promises; D63; L33; O50;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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