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FURTHER LESSONS FROM PRIVATISATION
Author(s) -
Ricketts Martin
Publication year - 2004
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2004.t01-1-00485.x
Subject(s) - competition (biology) , market economy , industrial organization , politics , business , process (computing) , state (computer science) , economics , action (physics) , economic system , political science , law , ecology , physics , algorithm , quantum mechanics , computer science , operating system , biology
Privatisation transfers assets from state to private ownership. However, this is not a sufficient action for competitive liberal markets to develop. Indeed, attempts by regulators to impose a structure on industries to promote competition actually inhibit the competitive process from determining the most efficient industrial structure. Privatised industries can still have their objectives determined through the political process. Thus, privatisation, to be fully effective, needs to be supported by other policies that will ensure that competition prevails and that the assets of the industries are used to meet the ends of consumers rather than those of politicians.