Privatization in Developing Countries: A Summary Assessment

Privatization has been an integral part of economic reform in almost all countries and across all sectors over the past 25 years.

Author(s): John Nellis

Publication Number: ECES-DLS24-E

In this distinguished lecture, John Nellis assesses the outcome of privatization to date in terms of its impact on the economy in general and privatized firms in particular. Drawing on the extensive evidence available, he finds that the economic impact of privatization is positive in the majority of cases. However, the distribution of the benefits among different stakeholders has not always been even. For privatization to deliver the most benefits, Dr. Nellis recommends that governments adopt appropriate measures to enhance competition, establish effective regulation of monopolies, conduct the sale process in a transparent manner, and devise reasonable packages to compensate the losers.