Privatization and social responsibility: A critical evaluation of economic performance

Provides a synthesis and critical evaluation of the results of existing research on privatization utilizing an international review and comparative analysis of relevant factors of economic and social performance. Based on the results of this analysis, it appears that the economic benefits of privatization activities promoted as a panacea by many public and private sector managers, are on average modest at best, while the social benefits are often mixed and uneven. Moreover, it seems that the role of privatization as a means of reforming the public sector has expanded internationally in scope and at such a rapid pace, that in many cases, the importance of objective and balanced measures of its overall effectiveness and impact on the affected communities need to be reexamined. Recommends that those responsible for planning of future privatization activities should refocus the present economic emphasis and strive for a balance of economic and social performance to improve long‐term benefits for all sectors of the affected communities.