A Policy Maker's Guide to Privatisation
Policy makers and privatisation experts agree that it is critical to “get privatisation right.” A well-planned and executed transaction, backed by sound rationales, institutional and regulatory arrangements, good governance, and integrity can have consequences on future divestment activity by enhancing investor confidence while gaining the support of stakeholders and the public. Drawing on the internationally agreed OECD Guidelines on Corporate Governance of State-Owned Enterprises and decades’ worth of national experience across both OECD and Partner economies, this Policy Maker’s Guide to Privatisation provides practical advice to newcomers on key stages of the process from inception to post-privatisation. With global privatisation activity trending upwards and expected to rise, this Guide can support policy makers in their decision making process in the years to come.
Introduction
This chapter introduces readers to the purpose of the Guide and provides an overview of its structure, coverage, applicability and definitions. Notably, the Guide draws on the OECD Guidelines on Corporate Governance of State-Owned Enterprises as a point of departure. The chapter provides a brief overview of trends in privatisation activity over the past three decades, indicating that privatisation paradigms have shifted over time. Drawing on data from recent privatisation trends, it projects future privatisation activity will continue to rise and situates the purpose of the Guide in this context.