Book Description

In the context of the privatisation debate, the neoclassical analysis translates into policy pres- criptions directed towards a reduction in the size of the public sector, the removal of government controls, the fostering of competition, and a greater reliance on the market and price mechanism for the allocation of resources (Cook and Kirkpatrick 1988: 9). [...] Fine (2005), points to the bias in the approach of the OECD and the World Bank in favour of market provision, even as the deficiencies of the market are increasingly being recognised as an obstacle to further privatisation itself, and advocates extension of the system of public service provision (SOP) approach from (private) consumption to public services. [...] Mana- gement of contracts involve the use of management expertise from the private sector to manage government entities through the payment of a fee; • Transferring of the provision of a good or service from the public to the private sector while the government retains the ultimate responsibility for supplying the service; for example, franchising or contracting out of pu- blic service and leasing. [...] In the literature, the Obadan 281008.pmd 28/10/2008, 12:0035 The Economic and Social Impact of Privatisation in Africa 36 main approach suggested in dealing with the above problem relates to the creation of financial intermediaries that would hold shares in the individual enterprises with the public in turn owning the equity of these intermediaries. [...] The first, as was noted before, relates to the underdeveloped nature of the capital market in the developing countries, in terms of the size of the market available to a divesting authority, limited capitalisation and number of traded issues.