Public Enterprises and Privatization in East Asia: Paths, Politics and Prospects(1)

Abstract

While the privatization of public enterprises has been a worldwide policy trend in the latter part of the 20th century and has often been forced on developing countries by international aid organizations, there is much evidence to suggest that the implementation and delivery of this policy are heavily influenced by national and local considerations. This article reports first on the varying reasons for establishing public enterprise systems in the countries of East Asia, and then on the various privatization initiatives taken and the issues that have arisen in relation to them in those countries. in contemplating the future, it is likely that present trends will continue, with public enterprises remaining significant, though subject to reforms seeking enhanced efficiency and accountability; and with privatization viewed as a ready tool to be resorted to as required, mostly for short-term purposes.