Domestic Economy

The Saga of Failed Privatization

The Saga of Failed Privatization
The Saga of Failed Privatization

Successful privatizations across the world show they started a gradual process of handing over small firms and industries from state hands to private entities and then expanding to large-cap companies and monopolistic industries. 
In Iran, however, the disorderly conduct of transfers has led to the flawed implementation of the procedure, said Yalda Rahdar, the deputy head of the National Iranian Entrepreneurs Organization, in a write-up for the news portal of Iran Chamber of Commerce, Industries, Mines and Trade. Excerpts of the article follow: 
Privatization is one of the proven pillars of economic growth and development. By restricting government-owned businesses, operations, or properties, and transferring them to the private sector, successful governments have managed to reduce the financial burden of public industries on their budgets and transferred them to the private operators. In less-developed countries or those dependent on exports of unprocessed commodities, the government owns a huge asset, which according to theories of economics, would improve employment and growth in the short run...


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