From Privatization to Re-nationalization: What went Wrong with Privatizations in Argentina?
The privatization process in Argentina is analysed. Beginning with a very ambitious programme, a weak regulatory environment was created because of lack of experience and as a result of the lobbying power of the newly created enterprises. Numerous exclusive privileges were assigned to these sectors, making them the most profitable industries during the 1990s. As the economy crashed in 2001 and the local currency was devalued, a new government took office, which renegotiated all contracts. This resulted in re-privatization and re-nationalization of many services. The pro- and anti-privatization arguments are reviewed, using empirical evidence from Argentina. An in-depth study is also provided of the three sectors where this negotiation was most intense: the railways, water and sewerage and postal services.
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Volume (Year): 36 (2008)
Issue (Month): 3 ()
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