In Latin America, it is rare for an academic or public intellectual to argue in favor of privatization as an economic policy. Some have even claimed that the failure of “neoliberal” policies, especially privatizations, was the cause of the violent demonstrations in Chile last year. Is there any kind of evidence that supports this series of claims? Has privatization always failed?
Although it is not possible to definitively prove with data a causal relationship between the private and public sectors’ differences in incentives and their differences in profitability or efficiency, the academic literature shows that in many countries and sectors this type of economic policy has had successful results. mehr hier