Bourguignon, FrançoisSepulveda, Claudia2012-03-192012-03-192009-11-01https://hdl.handle.net/10986/4323This paper briefly reviews the main theories of state versus private ownership and empirical evidence on the impact of privatization in developing countries (including transition economies). The paper draws some lessons for policy and offers some suggestions on how to assess privatization, at least in countries where there is still scope for it. The paper suggests that although understanding of the efficiency gains of privatization has increased significantly in recent years, there is an important area about which little is known: the distributional effects of privatization. Whether arguing from the standpoint of welfare economics or political economy, distributional effects are critical to the outcome, or the perceived outcome, of privatization. Thus, there is a need to fully evaluate the ex ante and ex post impacts of privatization, the most effective types of regulation and ownership regimes, and the way in which losers, when there are any, can be compensated. This is a need that must be met by academics and development agencies, including the World Bank and regional development banks.CC BY 3.0 IGOARREARSBANK PRIVATIZATIONBANKRUPTCYBENEFITS OF PRIVATIZATIONBUDGET CONSTRAINTSCAPITAL INVESTMENTCAPITAL STOCKCAPITALIZATIONCENTRAL GOVERNMENTCLEAN WATERCOLLECTIVE OWNERSHIPCOMPETITIVE ENVIRONMENTCONSUMER SURPLUSCONSUMER WELFARECONTRACTUAL OBLIGATIONCORPORATE GOVERNANCECORPORATE PERFORMANCEDEREGULATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDISSOLUTIONDOMESTIC BUYERSDOMESTIC INVESTMENTECONOMIC EFFICIENCYECONOMIC TRANSITIONECONOMICSECONOMICS OF PRIVATIZATIONECONOMIES IN TRANSITIONECONOMIES OF SCALEEFFICIENCY GAINSEMPIRICAL ANALYSISEMPIRICAL ANALYSIS OF PROFITABILITYEMPIRICAL EVIDENCEEMPIRICAL STUDIES ON PRIVATIZATIONEMPLOYMENTENTERPRISE RESTRUCTURINGEXECUTIVE DIRECTORSEXTENT OF PRIVATIZATIONEXTERNALITIESFINANCIAL PERFORMANCEFIRM PERFORMANCEFIXED COSTSFOREIGN OWNERSFOREIGN OWNERSHIPGROSS DOMESTIC PRODUCTHARD BUDGETHARD BUDGET CONSTRAINTIMPACT OF PRIVATIZATIONIMPACT OF PRIVATIZATION ON EMPLOYMENTIMPACT OF PRIVATIZATION ON PERFORMANCEINCOMEINCOME GROUPINCOME GROUPSINSTITUTIONAL REFORMSINTERNATIONAL BANK FOR RECONSTRUCTIONINVESTMENT FUNDSINVESTMENT SPENDINGLABOR INTENSITYLABOR MARKETLAWSLEVERAGELOCAL GOVERNMENTSLOW-INCOME COUNTRIESMACROECONOMIC IMPACT OF PRIVATIZATIONMAJORITY OWNERSHIPMARGINAL COSTMARKET FAILURESMETHOD OF PRIVATIZATIONMIXED OWNERSHIPMORTALITY RATEMORTALITY RATESMUNICIPALITIESNEW PRODUCTSOPERATING EFFICIENCYOUTPUTOUTPUT RATIOOWNERSHIP CONCENTRATIONOWNERSHIP RIGHTSOWNERSHIP STRUCTUREPOLITICAL ECONOMYPRICE CAPPRIVATE COMPANYPRIVATE FIRMSPRIVATE MONOPOLYPRIVATE OWNERSHIPPRIVATE SECTORPRIVATIZATIONPRIVATIZATION DATABASEPRIVATIZATION EXPERIENCEPRIVATIZATION IN TRANSITION ECONOMIESPRIVATIZATION OPERATIONSPRIVATIZATION PROCEEDSPRIVATIZATION PROCESSPRIVATIZATION PROGRAMPRIVATIZATION PROGRAMSPRIVATIZATION PROSPECTUSPRIVATIZATION WORKPRIVATIZATIONSPROCEEDS FROM PRIVATIZATIONPROCUREMENTPRODUCTIVE ASSETSPRODUCTIVE EFFICIENCYPRODUCTIVITYPROFITABILITYPROPERTY RIGHTSPUBLIC COMPANIESPUBLIC ENTERPRISESPUBLIC OWNERSHIPPUBLIC SECTORPUBLIC SECTOR REFORMPUBLIC SECTORSREGIONAL DEVELOPMENT BANKSREGULATED UTILITIESREGULATORY CHANGESSTATE FIRMSSTATE OWNERSHIPTRANSFER OF OWNERSHIPTRANSITION ECONOMIESTYPE OF OWNERSHIPUNBUNDLINGUNIT COSTUTILITIESVARIABLE COSTWATER COMPANIESWATER DISTRIBUTIONWATER PROVISIONWAVE OF PRIVATIZATIONWORLD DEVELOPMENT INDICATORSWorld Bank10.1596/1813-9450-5131