12-07-2018, 10:28 AM
The last four decades have witnessed the revision of the traditional relationship between the state and the productive sector. Triggered by the problems associated with state-led industrialization, many developing economies, from the 1970s onwards, began to adopt structural reforms that significantly reduced the presence of the state in the national economy. Privatization, the sale of state-owned assets, was centripetal to this process, and it has repeatedly proven to be a catalyst for fractious distributional and political battles
There is also significant regional variation in privatization. The first region to generate significant revenue from privatization was Latin America, with a sharp initial peak in the early 1990s, driven by the rapid and aggressive privatization programs of Argentina and Mexico. Following a brief hiatus, revenues peaked again in the late 1990s, this time driven by the privatization program of Brazil and to a lesser extent Colombia. Interestingly, revenues fell sharply after 1999, and remained quite low throughout our second sample period.
There is also significant regional variation in privatization. The first region to generate significant revenue from privatization was Latin America, with a sharp initial peak in the early 1990s, driven by the rapid and aggressive privatization programs of Argentina and Mexico. Following a brief hiatus, revenues peaked again in the late 1990s, this time driven by the privatization program of Brazil and to a lesser extent Colombia. Interestingly, revenues fell sharply after 1999, and remained quite low throughout our second sample period.