Affiliated Organization

Case Western Reserve University, USA


The paper investigates: (1) the types of interests and values that are regularly considered in shaping privatization decisions, whether they be related to various development goals, social goals, external considerations, or intangible factors; (2) the political-economic aspect, namely, the institutional features of any system that give preference, weight, or force to any particular argument, recommendation, or claim. Item two has been particularly under-attended in prior research. The literature brings to light good theoretical understanding of the likely effects of privatization and competition and of the importance of regulation, as a monopoly service provider such as a state controlled telecommunications entity is privatized. This paper directs us toward a practical understanding of the interplay of the motivation for privatization, interests and values of interest groups, and their impact on policy makers that determine the nature of privatization. This practical understanding is crucial in obtaining a clear, strategic, and wise answer to the research question: under what circumstances clash between institutions making regulatory policy decisions and interests and values of interest groups is the likely result and under what circumstances the privatization decision is likely to translate into behavior that is consistent with development goals (as manifested in the motivation for privatization).