Privatization, especially of monopolies and infrastructure sectors, has become increasingly important as national governments feel the pressure to reduce public spending, expand service, improve quality, and raise efficiency. Latin America has in recent years served as a laboratory for testing the limits of privatization. In Privatizing Monopolies, a distinguished interdisciplinary team of business school faculty, economists, political scientists, and practitioners from multinational companies examines the lessons of this process in two important sectors: telecommunications and transport (airlines and roadways).
Chapters examine why governments privatized these sectors, what strategies they used to divest enterprises, why private investors were drawn to the deals, and -- most important -- what difference privatization made to the performance of the sectors. Changes in managerial behavior, induced by changes in ownership, competition, and regulation, are used to explain the observed outcome. By analyzing the experiences of several countries in multiple sectors, the contributors offer valuable insights for other countries as well as for the privatization of other monopolistic sectors. Contributors: William M. Emmons III, Antonio Francés, José A. Gómez-Ibañez, Robert Grosse, José Luis Guasch, Janet Kelly, Ricardo Paredes-Molina, Ben Petrazzini, Ravi Ramamurti, Mabelle G. Sonnenschein, Pankaj Tandon, Alvin G. Wint, and Particia A. Yokopenic.
"With refreshing detachment, the authors paint a complex picture of successes and failures, while pointing up the lessons both for enterprises and governments." -- Raymond Vernon, Clarence Dillon Professor of International Relations, Emeritus, Harvard University
"The collection of essays by Ramamurti and his colleagues on the privatization of Latin American airlines, toll roads, and telephone systems is both detailed and thoughtful. It should be required reading for anyone interested in the economics of public services and in changing business trends in Latin America." -- Pedro-Pablo Kuczynski, President, Latin America Enterprise Fund