Taking the telecommunications and transport sectors as examples, this text examines the process of privatization in Latin America. It looks at why governments privatized these sectors, what strategies they used to divest enterprises, why private investors were involved, and, most importantly, the effects on performance. Changes in managerial behaviour, related to the process of privatization, are seen as explaining the outcome in terms of efficency and productivity. The text, by analyzing the experiences of several countries, aims to offer insights for other countries, as well as for the privatization of other state sectors.
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Ravi Ramamurti is associate professor of business administration at Northeastern University. His books include 'State-Owned Enterprise in High Technology Industries' and 'Privatization and Control of State-Owned Enterprises'.
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