Privatisation is often suggested as means to improve efficiency of state-owned companies and to increase involvement of developing countries in globalisation. This paper examines the economic and social impact of the privatisation of large resource companies in the context of weak institutional environments. The key stakeholders involved in the process of privatisation are identified: national and international governments; private corporations; civil society; and local communities. The complexities of interplay and power relationships among them are described. The main outcome is improved production and increased government revenues. But the marginalisation of the local community during the process and the negative impact on the well-being of its members calls for changes in the process. Privatisation in response to globalisation did not improve stakeholder circumstances. Overall, this development model does not seem sustainable. Suggestions are made for its improvement for a long-term and shared prosperity.

Privatisation is often suggested as means to improve efficiency of state-owned companies and to increase involvement of developing countries in globalisation. This paper examines the economic and social impact of the privatisation of large resource companies in the context of weak institutional environments. The key stakeholders involved in the process of privatisation are identified: national and international governments; private corporations; civil society; and local communities. The complexities of interplay and power relationships among them are described. The main outcome is improved production and increased government revenues. But the marginalisation of the local community during the process and the negative impact on the well-being of its members calls for changes in the process. Privatisation in response to globalisation did not improve stakeholder circumstances. Overall, this development model does not seem sustainable. Suggestions are made for its improvement for a long-term and shared prosperity.