The Political Underpinnings of Privatization: A Typology

Abstract

In shifting responsibilities from government to market, privatization has the potential to alter the institutional framework through which citizens normally conceive and pursue their individual and shared interests. But the literature has presented it as a relatively apolitical adaptation to changing conditions. Rather than a choice among means to achieve broadly shared goals, privatization often takes the form of a strategy to realign institutions so as to privilege the goals of some groups over the competing aspirations of other groups. Drawing primarily on the experience of Western, industrialized nations, a political typology is developed that distinguishes between privatizations undertaken foi different reasons—whether pfagmatic, tactical, or systemic.