Emerging issues of privatization and the public sector

Pressure to move toward privatization has mounted in the face of severe economic crises both in the developed and developing world. To date, the pace of privatization in the developing world has been slow and its impact modest. This report accordingly discusses the issue of privatization in the context of developed and developing countries. In addition, it examines certain issues that occur with privatization such as the effect competition and ownership have on performance, the tension between multiple objectives and the proper balance between the enterprise's autonomy and the government's role in regulating market power. The report concludes that if these issues are neglected and not taken into account, the long term benefits of privatization will not materialize.