ECON 314 Lecture Notes - Lecture 12: United States Agency For International Development, Equity Swap, Price Ceiling
24 Jun 2019
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Next monday will be the last available oh. Prof might add oh the monday before the final exam (tba) Transfer of ownership and control from the public to the private sector. Build-own-operate transfer agreements (usually from private to the public sector) The government will invite private individuals to build-own-operate a company for a set period of time. Then, it will be transferred back to the government once efficient. Theoretically this is a good idea, but in practice it tends to fail. Privatization was actively promoted by major international bilateral (usaid) and multilateral agencies (world bank; imf) Privatization reduces the obligations of government to provide services. This was meant as a debt reduction strategy (particularly in the 1980s in the developing world) However, this negatively affected the poorest due to increases in costs for basic goods and services. The argument: privatization has been successful in promoting greater efficiency and higher output.
