Privatizing state owned enterprises in Latin America: A research agenda

Milman, Claudio; Lundstedt, Sven B.

doi:10.1080/01900699408524959

Cited by 7 publications

(4 citation statements)

References 5 publications

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“…World Bank estimates suggested that at least 60% of the overall external debt of Latin American countries was owed by public enterprises which, because of their adverse performance, were mostly unable to meet their obligations to repay.2 So the need to arrest this problem came to coincide with the international push to privatize, and local citizens (this was said to constitute Chile's "unique popular capitalism") and foreign firms alike were given opportunities to buy up public enterprise debt and so acquire equity in those enterprises. Much privatizing in Argentina, Costa Rica, Mexico, Brazil and Jamaica (also, outside the Americas, the Philippines) proceeded in this way (Basile, 1990; see also Milman and Lundstedt, 1994).…”

Section: Second Generation Reforms: Institutional Reformsmentioning

confidence: 96%

Challenges for Latin American States and Public Enterprises at the Turn of the New Millennium

Hernandez

2002

Public Finance and Management

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This article acknowledges that the last decades of the 20th century have seen the institutions of governance in Latin American countries affected by small macroeconomic achievements and reduced economic growth, and the development of an extremely fragile democracy. the implanting of the new model of neoliberal state consolidation has come at high cost, and has not produced either the expected strengthening in the political, economic and social spheres, or the expected gains in efficiency, equity and freedom. This so-called economic liberalization has generated instability in the structure and functions of the state and public enterprises, limiting the reaches of democracy and legality, and ensuring that the effects of the associated managerial orientation which has transformed public administration are largely negative. Looking forward into the 21st century, a pessimistic prediction is that these tendencies will continue, producing similar unstable mixes of democratic populism and oligarchic pragmatism. More optimistically, the Latin American states may come to see that genuine social development is necessary for sustained economic growth, and introduce policies to achieve that outcome.

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Section: Second Generation Reforms: Institutional Reformsmentioning

confidence: 96%

Challenges for Latin American States and Public Enterprises at the Turn of the New Millennium

Hernandez

2002

Public Finance and Management

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“…The 'relative' rate of profit or surplus accumulation of the 1970s has now been replaced by the outward, globalizing corporate capital that is enjoying mass earnings from the 'absolute' profit rate or surplus accumulation worldwide -in Africa, Asia and Latin America. Therefore, privatization has become an engine of globalization worldwide, to the point that under US Treasury Department guidance, the International Finance Corporation of the World Bank reportedly provided $200 billion to the Third World 'to promote the private sector' in the 1990s (Milman andLundsted, 1994: 1667). Unlike previous business cycles or changes in the long waves, the new wave of globalization is an 'epochal' one, a much longer wave with far-reaching consequences for societies, peoples, economies and governments.…”

Section: Relationship With Globalizationmentioning

confidence: 99%

Privatization and Globalization: A Critical Analysis with Implications for Public Management Education and Training

Farazmand

2002

International Review of Administrative Sciences

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This article addresses the phenomenon of sweeping privatization as a ‘strategic instrument of globalization of capital’. Using a political economy analysis, it argues that, among other things, but most importantly, privatization should be understood in a direct correlation with the globalization of capital under late or corporate capitalism. It argues that privatization has been conceived by design, not by chance and haphazard events, and that its implementation has been pursued purposely, deliberately and vigorously around the world to accomplish the objectives of the globalization of capital. This has been happening despite evidence of extremely successful experiences with public enterprise management and government-owned enterprises worldwide. The article also treats the phenomenon of globalization as a globally transcending process towards a more rapid accumulation of surplus value of advance or corporate capitalism; hence a change within the continuity of the process of surplus accumulation by global capitalism. To understand this direct relationship between change and continuity and between privatization and globalization, we must first understand what globalization means, and then explain its corollary strategy of privatization worldwide. This article presents, first, a brief theoretical discussion of globalization and then a detailed argument of privatization as a strategic instrument of globalization of capital and, finally, some implications are provided for public management education and training.

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“…Several positive outcomes of the market-based privatization policy are reported. They include the heightened ability to obtain new foreign loans for developing nations and debt release, reducing deficits and high inflation rates (Milman and Lundsted, 1994), shrinking the government's size, responding to political pressures (see Henry, 1995, for details) and obtaining cash as an additional revenue for the treasury (Cowan, 1990).…”

Section: Indigenous Factorsmentioning

confidence: 99%

“…The World Bank alone allocated over $200 billion to promote privatization and marketization of public enterprises in the Third World for the decade of the 1990s (Milman andLundsted, 1994: 1667;Farazmand, 1996: 18). This is a substantial amount of money with major strings attached, and thus Third World countries are targeted to change their policies, programs, strategies and priorities in favor of global capitalism.…”

Section: Exogenous Factorsmentioning

confidence: 99%

Privatization or Reform? Public Enterprise Management in Transition

Farazmand

1999

International Review of Administrative Sciences

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Introduction: the rise and decline of public enterprise This article addresses the following questions: Why has privatization become so pervasive? Is privatization a good policy? Is there a limit to privatization and has it worked? Are there alternatives to privatization? What is the current status of public enterprises? Can public enterprise management be reformed for high performance and accountability?The article warns about the long-term negative consequences of sweeping privatization, which it sees not as a simple economic policy but rather as a global ideological strategy of capitalism, pursued by concentrated corporate élites and designed to reverse the older strategy of state intervention in the economy pursued through much of the 20th century for reasons of social and economic justice. The article suggests alternatives to sweeping privatization, including serious reforms in the management of public enterprise, which the author believes is not doomed -its resurgence will come for sure, if not very soon.Public enterprises have played a pivotal role in building the infrastructures necessary for national development, in facilitating private sector development and operation, and in enhancing social and economic justice around the world. They have been the engines of economic and social development in both industrialized and developing nations. They were considered essential for national and economic development almost everywhere in capitalist and mixed economies as well as in the socialist nations. Despite their significant contributions, however, they have, since the 1980s, become the target of relentless privatization decisions by conservative/right-wing governments of the West, which have imposed their approach on developing and less-developed nations as well. Unfortunately, some liberal governments of industrialized nations have also pursued privatization in an undiscriminating way.The waves of privatization have sounded a serious alarm among concerned citizens, communities and professionals in public, non-profit and non-governmental organizations. Scholars and experts in government and administration

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Privatizing state owned enterprises in Latin America: A research agenda

Cited by 7 publications

References 5 publications

Challenges for Latin American States and Public Enterprises at the Turn of the New Millennium

Challenges for Latin American States and Public Enterprises at the Turn of the New Millennium

Privatization and Globalization: A Critical Analysis with Implications for Public Management Education and Training

Privatization or Reform? Public Enterprise Management in Transition

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