Understanding the historical processes of privatization policies in North Africa: Lessons from the cases of Algeria, Morocco and Tunisia

Abstract

This paper provides a concise historical analysis of the political economy of privatization in Algeria, Morocco, and Tunisia from the 1980s to 2007, a period that witnessed the emergence of privatization as a primary policy tool to reform the public sector. The paper examines the influence of political history, macroeconomic considerations, and International Development Agencies (IDAs) on the early privatization processes in these North African countries. Despite shared developmental trajectories, internal and external factors had a significant impact on the outcomes of economic liberalization. The paper aims to answer the following key questions: What were the underlying political-economic factors driving privatization, and how successful was it in achieving the promised economic growth? Through a focused analysis of each country’s contextual factors, privatization processes, and outcomes, the paper contributes valuable insights into the nuanced dynamics shaping privatization in developing countries.