Privatization: Keep the state out of business

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Privatization: Keep the state out of business

There is a growing backlash - academic and political - against privatization. Influential figures have even argued for re-nationalization. But given the wealth of evidence in favour of privatization, this would be a disaster, argues James Smalhout.

Lessons for privatizers


Selection of pending privatizations Company Sector Country Stake (%) Amount ($m) CVRD Mining Brazil 26-31 1,000 Light Electricity Brazil 28 na Petrobras Oil & gas Brazil 31.7 na VSNL Telecom India 5 200 THY Airline Turkey 25 na Shaanxi Holding co China na 85 Yunnan Tourism Travel China na na Henan Hong Kong Holding Holding co China na 85 Jiangsu Holding co China na na China Intl Pwr Electricity China na 543 Bangchak Petro Oil Thailand 31.0 na Air China Airline China na na Chinese Petro Oil Taiwan 10-15 na China World Trade Property China na 200 Huangshi Power Electricity China na na SMPEC Electricity China na na Xuzhou Engineering Machinery China na na Nantong Smooth Sail Containers China na na Shandong Shouguang Paper Paper & pulp China na na Henan Xinfei Electric Electricity China na na Shandong Jinan Polyester Textiles China na na Three Nine Pharmaceutical Pharmaceuticals China na Guizhou Wujiang Hydro Electricity China na 129 Quinghai Aluminium Metals China na 60 Sanxin Metals China na 24 Shenzhen Gt Ocean Shipping China na 23 Tianjin Automotive China 25 na Tianjin Tradtional Medicine Pharmaceuticals China na na Nanjing Central Emporium Retail China na na Guangdong Sanmao Rail China na na Queensland TAB Gaming Australia na 113 Punjab National Bank Banking India 25 140 Jasa Marga Roads Indonesia na na JR East Rail services Japan na na Korea Housing & Commercial Bank Banking Korea 46.8


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