of ownership of state-Owned Enterprises ..
with the privatization of state-owned enterprises ..
Privatizing state-owned firms promises to bringsomefiscal relief, particularly where the treasury has been heavilysubsidizing unprofitable enterprises.
State-owned enterprise - Wikipedia
Indeed, rather perversely, one could turn thewhole force of public choice analysis on privatization itself:Thelogic of concentrated benefits and diffuse costs makes italtogether likely that the diffuse efficiency gains ofprivatization will be sacrificed in the effort to satisfy the bigstakeholders--incumbent politicians and bureaucrats and theirallies and supporters.Politically inspired privatization is all the more likely becauseprivatization attracts support not only from economists with adisinterested belief in liberalized markets but also from aprivatization lobby consisting of investment banking firms,government contractors, and other corporations whose businessesstand to benefit if the public sector cedes ground.
Why Vietnam’s latest privatization push may succeed
Moreover, the performance of some state-owned enterprises--forexample, in Malaysia and France--has been excellent, and it issimply not true that as public sectors grow, rates of economicgrowth fall.60 To be sure, the record of central governmentplanning is dismal, but that experience cannot simply beextrapolated to all publicly owned organizations, particularly instates with more autonomous forms of public sector management.The property rights approach predicts politically imposedinefficiency on the basis of public ownership alone, but thevariety of public sectors and state-owned enterprises in theworldsuggests instead that performance may be contingent on politicalculture, the structure of the state, and public policy towardenterprises.
Privatization in China - San Jose State University
When governments underprice shares--as has beentheoverwhelming pattern in Britain--they may be seeking to ensurenotonly that privatization is successfully realized, but also thathappy shareholders have the opportunity to repay the governmentatthe next election.