Privatization in competitive sectors : the record to date

The paper reviews recent evidence on the impact of privatization. It focuses on traditional privatization efforts involving firms in competitive markets. It shows that privatization improves firms'financial and operating performance, yields positive fiscal and macroeconomic benefits (proceeds are saved rather than spent, transfers decline, and governments start collecting taxes from privatized firms), and improves overall welfare. The popular view that privatization always leads to layoffs is unfounded. While highly protected firms have seen significant declines in net employment, competitive firms generally experienced slight declines if any. Privatization's effects on wealth and income distribution have only recently been receiving the attention of analysts, and research is just getting underway. The paper highlights the conditions for successful privatization: strong political commitment combined with wider public understanding of and support for the process; creation of competitive markets through removal of entry and exit barriers, financial sector reforms that create commercially oriented banking systems, effective regulatory frameworks that reinforce the benefits of private ownership; transparency in the privatization process; and measures to mitigate adverse social and environmental effects.Banks&Banking Reform,Non Bank Financial Institutions,Municipal Financial Management,Financial Crisis Management&Restructuring,Trade Finance and Investment,Municipal Financial Management,Financial Crisis Management&Restructuring,Non Bank Financial Institutions,Economic Systems,Banks&Banking Reform

Privatization : trends and recent developments

This paper takes stock of recent privatization trends, examines the extent to which government ownership is still prevalent in developing countries, and summarizes emerging issues for state enterprise reform going forward. Between 1990 and 2003, 120 developing countries carried out nearly 8,000 privatization transactions and raised $410 billion in privatization revenues. Privatization activity peaked in 1997 and dropped off in the late 1990s and, while still at overall low levels, is slowly creeping back. While there are a large number of studies assessing the impact of privatization on enterprise performance and overall welfare, there are no systematic data on the extent to which privatization has changed the role of state enterprises in the economy. Anecdotal evidence suggests that the state's role has been substantially reduced in Eastern and Central Europe and in certain countries in Latin America. But available evidence also suggests that, despite a long track record of privatization, government ownership in state enterprises is still widely prevalent in some regions and countries, and in certain sectors in virtually all regions.The paper shows that the costs of not reforming state enterprises are high and that continued efforts need to be made to improve their performance by improving privatization policies and institutions; adopting more of a case-by-case approach for complex sectors and countries; and exposing state enterprises to market discipline through new private entry and exit of unviable firms and improvements in their corporate governance.Banks&Banking Reform,Privatization,Municipal Financial Management,State Owned Enterprise Reform,Private Participation in Infrastructure

Reforming the investment climate : lessons for practitioners

Most people agree that a good investment climate is essential for growth and poverty reduction. Less clear is how to achieve it. Many reforms are complex, involving more than technical design and content. They are both political, facing opposition from organized and powerful groups-and institutionally demanding, cutting across different departments and levels of government. Reform thus requires paying as much attention to understanding the politics and institutional dimensions as to policy substance, which is the goal of this paper. Drawing from more than 25 case studies, it shows that there is no single recipe or"manual"for reform, given diverse contexts and serendipity in any reform effort. But three broad lessons emerge. The first is to recognize and seize opportunities for reform. Crisis and new governments are important catalysts, but so is the competition generated by trade integration and new benchmarking information. The second is to invest early in the politics of reform. Central to this process is using education and persuasion strategies to gain wider acceptance and neutralize opponents. Pilot programs can be valuable for demonstrating the benefits and feasibility of change. And the third is to pay greater attention to implementation and monitoring. This does not require full scale public management reforms. Reformers can draw on private sector change management techniques to revitalize public institutions responsible for implementation. Given the cross-cutting nature of reform, new oversight mechanisms may be needed to monitor and sustain reform. The paper concludes with an emerging checklist for reformers and identifies areas for future work.Enterprise Development&Reform,Children and Youth,Economic Theory&Research,Population Policies,Markets and Market Access

Bank lending for divestiture : a review of experience

The objectives of this paper are to: (a) describe the rationale for and key components of Bank support for divestiture; (b) examine the documented experiences and reform outcomes, and highlight the key implementation and management issues facing borrower governments and the Bank; and (c) draw some conclusions for the future role of the Bank in this reform area. After reviewing Bank support for divestiture, this paper concludes that divestiture operations are best tailored to country conditions. Sometimes divestiture yields minimal results. For example, small- and medium-sized public enterprises (PEs) may be divested, reducing the government's burden little; partial divestments may mean continued government interference; governments may assume liabilities higher than the sale price; or new investors may be given privileges and monopoly rights that produce more inefficiency. Sometimes the best policy may be to improve the environment inwhich PEs function. Ownership changes are only one element of broader PE reform, the implementation of which could create a better climate for divestiture later. The Bank could assist by spelling out the institutional set-up for managing divestiture.Banks&Banking Reform,Economic Theory&Research,Private Sector Economics,Financial Crisis Management&Restructuring,Municipal Financial Management

Characterizing the spreading behavior of radius, contact angle, and spreading velocity of trisiloxane "superspreader" surfactants:/

Thesis (S.B.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering, 2012.Cataloged from PDF version of thesis.Includes bibliographical references (p. 35).The ability of surfactants to lower surface tension makes them a key element in many products in a variety of industries. Trisiloxane surfactants have shown extraordinary wetting on hydrophobic surfaces, and are known as "superspreaders". Studies in the past have had inconsistent results characterizing the spreading of these surfactants. In this study, the radius and contact angle during spreading of different concentrations of trisiloxane ethoxylate are measured in a humidity-controlled box. Consistent with other studies, concentrations above the critical aggregation concentration spread more, resulting in lower contact angles and larger radii. The spreading behavior for radius and contact angle can be modeled using an exponential fit. Using the exponential models, a relationship between spreading velocity and contact angle can be found. For concentrations above the critical aggregation concentration, a linear relationship between contact angle and spreading velocity was found.by Sean K. Vaskov.S.B

Technological review of deep ocean manned submersibles

Thesis (S.B.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering, 2012.Cataloged from PDF version of thesis. Vita.Includes bibliographical references (p. 63-65).James Cameron's dive to the Challenger Deep in the Deepsea Challenger in March of 2012 marked the first time man had returned to the Mariana Trench since the Bathyscaphe Trieste's 1960 dive. Currently little is known about the geological processes and ecosystems of the deep ocean. The Deepsea Challenger is equipped with a plethora of instrumentation to collect scientific data and samples. The development of the Deepsea Challenger has sparked a renewed interest in manned exploration of the deep ocean. Due to the immense pressure at full ocean depth, a variety of advanced systems and materials are used on Cameron's dive craft. This paper provides an overview of the many novel features of the Deepsea Challenger as well as related features of past vehicles that have reached the Challenger Deep. Four key areas of innovation are identified: buoyancy materials, pilot sphere construction/instrument housings, lighting, and battery power. An in depth review of technological development in these areas is provided, as well as a glimpse into future manned submersibles and their technologies of choice.by Alex Kikeri Vaskov.S.B

Prophylactic balloon angioplasty fails to prolong the patency of expanded polytetrafluoroethylene arteriovenous grafts: Results of a prospective randomized study

AbstractPurpose: Maintenance of hemodialysis access grafts represents an enormous social and clinical problem. Current grafts and graft salvage techniques are inadequate. Consequently, there has been increasing interest in the use of minimally invasive catheter techniques to prophylactically treat stenoses in functioning arteriovenous grafts. Prophylactic balloon angioplasty has been widely suggested as prolonging assisted primary patency. We have performed a prospective randomized trial to compare patients who underwent percutaneous transluminal angioplasty (PTA) for graft stenoses >50% with a control group that received no intervention. Our hypothesis was that to be efficacious a minimal benefit of 20% prolongation in patency would be necessary.Methods: Color flow duplex scanning was used to detect >50% stenoses in functioning expanded polytetrafluoroethylene grafts. Patients were then subjected to confirmatory angiographic evaluation. Those who had angiographic stenoses >50% were randomized to balloon angioplasty or observation. Patients were followed-up with duplex scanning every 2 months. Statistical analysis was performed using the Kaplan-Meier technique. Although demographically the patient groups were well matched, there were more prior interventions and concurrent central stenoses in the treatment group. Outcomes were graft thrombosis, graft dysfunction that precluded dialysis, and six or more PTA procedures within 18 months.Results: In the treatment and observation groups, the 6-month patency rates were 69% ± 7% and 70% ± 7%, respectively. The 12-month patency rates for the treatment and observation groups were 51% ± 6% and 47% ± 4%, respectively. There was no significant difference between these two groups ( p = 0.97), with an 80% confidence limit for detection of a difference greater than 20%.Conclusions: This study demonstrates that a generic approach of PTA to treat all polytetrafluoroethylene grafts with stenoses >50% does not prolong patency and cannot be supported

Excessive public employment and rent-seeking traps

We propose a model where the size of the public sector and aggregate output are interrelated through the occupational choice of agents who differ in their skill level and degree of public-mindedness. When the public sector attracts bureaucrats with low degree of public service motivation, they will use their position to rent seek by employing an excessive number of unskilled workers. This leads to an equilibrium with relatively high unskilled wages, which lowers profits and deters entrepreneurship. Conversely, an equilibrium with a lean public sector and greater private economic activity arises when public service motivated agents populate the state bureaucracy. These agents exert high effort and employ a limited number of unskilled workers. Our model also shows that a bloated public sector with high wages may be supported by the unskilled agents