Page 221 - Volume 2_CHANGES_merged_with links

Obstacles to progress

Realities

“ We find that the sale privatization method never exerts a significant independent influence on

growth, and the method of mixed privatization hardly ever has a statistically significant effect.
In contrast, the method of mass privatization is shown to be positively associated with

growth “
"Methods of privatization and economic growth in transition economies" 279
Bennett, John; Estrin, Saul; Urga, Giovanni (2006)
Working Paper, Transformation,
Integration and Globalization Economic Research (TIGER)

***** ***** *****
Privatisation in Africa
Methods of Privatization (1991-2001)
Method of divestiture Number
Shares sold on Competitive Basis 728
Asset sold on a competitive basis 454
Liquidation 386
Shares sold to Existing Shareholders
with Pre-emptive Rights 158
Lease 104
Direct sale of shares (i.e. non-competitive) 94
Shares sold trough public floatation 69
Not specified 48
Restitution to former owner 47
Management contract 42
Management/Employee Buyout 33
Direct sale of assets (i.e. non-competitive) 29
Joint-venture 28
Free transfer of assets 12
Transfer to Trustee 11
Debt-Equity Swap 10
Concession 8
JV(D) 5
Lease /Management contract 2
Merger 2
TOTAL 2270