Privatization: Keep the state out of business

There is a growing backlash - academic and political - against privatization. Influential figures have even argued for re-nationalization. But given the wealth of evidence in favour of privatization, this would be a disaster, argues James Smalhout.

Lessons for privatizers

Selection of pending privatizations Company Sector Country Stake (%) Amount ($m) CVRD Mining Brazil 26-31 1,000 Light Electricity Brazil 28 na Petrobras Oil & gas Brazil 31.7 na VSNL Telecom India 5 200 THY Airline Turkey 25 na Shaanxi Holding co China na 85 Yunnan Tourism Travel China na na Henan Hong Kong Holding Holding co China na 85 Jiangsu Holding co China na na China Intl Pwr Electricity China na 543 Bangchak Petro Oil Thailand 31.0

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