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Volume :6 Issue : 2 1999      Add To Cart                                                                    Download

A Model for Evaluating Privatization Feasibility for A Developing Country

Auther : Mohammed M. Quota
Ahmed W. Alem
Mirek Karasek

Privatization is one of the most discussed topics in current economics. It seems to be treated as the major tool to revitalize, turnaround and /or magically cure all problems that have accumulated over the decades of existence of public ownership in various countries. While some of the theoretical foundation behind “ privatization” may agree with this statement, it is essential to stress that ownership arrangement is only one of many factors that play a role in revitalization. This paper examines privatization in the following steps: First, discussion of privatization theoretical foundations, advantages and disadvantages in general terms. Secondly, develop a general model along with a graphical rendition so that basic elements of privatization and their interrelation can be analyzed and discussed. Thirdly, derive and define a logically acceptable scale on which we could measure, rank or otherwise quantify the total utility or disutility of privatization for the case in question. Finally, as an example, apply the general privatization model to the Kingdom of Saudi Arabia.

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