The Political Economy Of Privatization In Rich Democracies

Almost all advanced democracies have launched significant privatization programs over the last three decades. However, while there was a global run into privatization, substantial cross-national differences in the divesture of state-owned enterprises can be observed. This book focuses on the political economy of privatization, and addresses the questions 'What are the driving forces behind this development and how can the variation be explained?' which are of both theoretical and empirical interest. While the topic itself is not new, the existing comparative literature on the political economy of privatization suffers from at least two major shortcomings: First, recent macro-quantitative analysis in political science and economics has only focused on material privatization; formal privatization has hitherto been neglected due to an absence of data, even though this type of privatization is of eminent relevance in the public utility sectors. Second, most of the empirical studies in this area treat countries as independent units. In reality, however, policy decisions are likely to be interdependent. Policy decisions taken in one country influence the decision-making process in others. Given these shortcomings in the existing literature, the idea of this volume is to supply a fresh and comprehensive overview of the political economy of privatization using a new data set, the REST database. The empirical analysis covers 20 OECD countries in the period between 1980 and the advent of the global economic crisis in 2008. The recent economic crisis provides a good opportunity to take stock of the changing role of government in economic over the last three decades.

In this landmark work, the culmination of 30 years of systematic, comprehensive comparison of 19 rich democracies, Wilensky answers two basic questions: (1) What is distinctly modern about modern societies--in what ways are they becoming alike? (2) How do variations in types of political economy shape system performance? He specifies similarities and differences in the structure and interplay of government, political parties, the mass media, industry, labor, professions, agriculture, churches, and voluntary associations. He then demonstrates how differences in bargaining arrangements among these groups lead to contrasting policy profiles and patterns of taxing and spending, which in turn explain a large number of outcomes: economic performance, political legitimacy, equality, job security, safety and risk, real health, the reduction of poverty and environmental threats, and the effectiveness and fairness of regulatory regimes. Drawing on quantitative data and case studies covering the last 50 years and more than 400 interviews he conducted with top decision-makers and advisors, Wilensky provides a richly detailed account of the common social, economic, and labor problems modern governments confront and their contrasting styles of conflict resolution. The result is new light on the likely paths of development of rich democracies as they become richer. Assessing alternative theories, Wilensky offers a powerful critique of such images of modern society as "post-industrial" or "high-tech," "the information age" or the alleged dominance of "globalization." Because he systematically compares all of the rich democracies with at least three million population, Wilensky can specify what is truly exceptional about the United States, what it shares with Britain and Britain abroad (Canada, Australia, New Zealand) and what it shares with all or almost all of the West European democracies, Israel, and Japan. He gives careful attention to which successful social and labor policies are transferable across nations and which are not. Rich Democracies will interest both scholars and practitioners. It combines the perspectives of political economy (the interplay of markets and politics) and political sociology (the social bases of politics). It will be especially useful in courses on comparative political economy, comparative politics, European politics, public policy, political sociology, the welfare state, American government, advanced industrial societies, and industrial relations.

In The Political Economy of Privatization the authors assess the success of privatization. The work is an international study of the extensive privatization, and the pressure towards privatization, in different parts of the world. The book includes: * A study of the relationship between ownership and performance; * An assessment of the importance of market structure and regulation; * A discussion of privatization strategies within the public sector; * Individual country case-studies, looking at the experience of different countries engaged in the contrasting approaches to privatization. * A critical assessment of the much vaunted relationship between ownership and efficiency.

In the new global political economy, "privatization" names a transformation of the roles of public and private actors with the goal of reforming government policies and economic aid programs. It is an objective, a slogan, a fetish. But what does it signify? On the one hand, it refers to the process of changing industries, businesses, and services from governmental or public ownership to private agencies. But privatization now also extends to what are normally the prerogatives of national states: taxation, customs, internal security, national defense, and peace negotiations. In much of the literature, privatization is associated with the retreat, decline, or even demise of the state. Using Max Weber's concept of delegation, or "discharge," as a point of departure, Hibou and the contributors of this volume propose an alternative view, interpreting the contemporary restructuring of economic and political relations in much of the world as "the privatization of the state." This book challenges received ideas about the process of globalization and its presumed homogenization by suggesting that rather than weakening the powers of the state, privatization actually strengthens it. With examples from Russia, Poland, China, Taiwan, Indonesia, North Africa, and sub-Saharan Africa, the book questions the supposed inefficiency of states in regulating capitalism and the role economic and financial knowledge play as substitutes for political and social analysis.

This book suggests some of the ways in which levels of development shape public sector reform and privatization in developed and developing countries, showing that conservative as well as socialist governments were committed to increasing the state's guiding role in the political economy.

The collection of articles in this volume reflect the vigorous implementation of privatization in Europe and deregulation in the United States over the last 25 years. The evolutions of the movements is discussed, both intellectually and politically.

Exploring the role of privatisation in postcommunist Central & Eastern Europe, this text uncovers a surprising relationship between political liberalization & economic reform.

The book the American Prospect calls “an essential resource for future reformers on how not to govern,” by America’s leading defender of the public interest and a bestselling historian “An essential read for those who want to fight the assault on public goods and the commons.” —Naomi Klein A sweeping exposé of the ways in which private interests strip public goods of their power and diminish democracy, the hardcover edition of The Privatization of Everything elicited a wide spectrum of praise: Kirkus Reviews hailed it as “a strong, economics-based argument for restoring the boundaries between public goods and private gains,” Literary Hub featured the book on a Best Nonfiction list, calling it “a far-reaching, comprehensible, and necessary book,” and Publishers Weekly dubbed it a “persuasive takedown of the idea that the private sector knows best.” From Diane Ravitch (“an important new book about the dangers of privatization”) to Heather McGhee (“a well-researched call to action”), the rave reviews mirror the expansive nature of the book itself, covering the impact of privatization on every aspect of our lives, from water and trash collection to the justice system and the military. Cohen and Mikaelian also demonstrate how citizens can—and are—wresting back what is ours: A Montana city took back its water infrastructure after finding that they could do it better and cheaper. Colorado towns fought back well-funded campaigns to preserve telecom monopolies and hamstring public broadband. A motivated lawyer fought all the way to the Supreme Court after the state of Georgia erected privatized paywalls around its legal code. “Enlightening and sobering” (Rosanne Cash), The Privatization of Everything connects the dots across a wide range of issues and offers what Cash calls “a progressive voice with a firm eye on justice [that] can carefully parse out complex issues for those of us who take pride in citizenship.”