Countries throughout the world are increasingly selling off their shares in state industries, according to a report from the Organisation for Economic Co-operation and Development. A variety of factors is propelling the trend, according to the report.
Reasons for the sales include budget restrictions, the need to attract investment, technological progress and the liberalisation and globalisation of world markets and products.
In countries using the common European currency, the euro, the most visible factor was the commitment of governments to meet strict fiscal objectives, as well as a need to satisfy European Union directives on open markets.
OECD member states in transition to market economies – Poland, Hungary and the Czech Republic – have also stepped up privatisations. Of these, Poland was the most active last year, raising $3 billion (R20 billion) from the banking sector alone.
Source: Agence France-Presse, “Global Assets Go into Private Hands at a Lively Pace,” Washington Times, July 20, 2000.
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