Privatization

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Privatization: Country Analysis
You have read about privatization processes in Europe, Asia, and South America. In this post, you will research and analyze the privatization process in one country.

Select one country from any of the following regions: Western Europe, Asia, and South America. Research the countryâ??s economic system and privatization process. Analyze the privatization processes from the perspectives of â??the winners of privatization,â? â??the losers of privatization,â? and foreign direct investments. Write a 4-page analytical paper presenting your findings.

The country that is selected from Western Europe is France. The process of privatization is that presented by Jacques Chirac during his Prime Minister ship period of 1986-88. Earlier privatization had started during 1982 when P. Mitterrand opened the broadcasting sector to private operators. TF1 the public TV channel was privatized. However, privatization really picked up during 1986. The French privatization has been affected by the European deregulation especially in the Telecom sector. The timing of privatization has been done to match favorable stock prices.

From the perspective of winners of privatization in France the winners are the management of the public entities so that they can follow their development plans. The management are the winners in France when privatization leads to globalization, strategic alliances, and technical innovations. From one perspective the Government of France is a loser because it has to sell off some of its best performing enterprises on the other hand the state of France has been consistently using privatization to finance state budget deficits. These funds help finance state expenses that otherwise would not have been possible. From this perspective even the state of France is a winner.

The privatization in France is intrinsically related to the government in power. ...