How Do Countries Privatize?
How Do Countries Privatize?
This chapter examines the practical aspects of privatizing state-owned enterprises (SOEs). It identifies the key issues that governments must confront in determining which SOEs to divest, and then describes the steps involved in commercializing and preparing a state-owned enterprise for privatization. Governments wishing to privatize one or more state enterprises must follow a fairly standardized process of first preparing the company for sale, then deciding on the optimal method of sale and the offering price, and finally actually selling the firm to private investors. Each step in this process has its own challenges and hazards, and is almost always steeped in controversy.
Keywords: privatization, state-owned enterprises, SOE, restructuring, commercialization, divestment, share issue privatization
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