Professor William Megginson in the print edition of the NBR:
“. . . privatisation ‘works’ in the sense that divested firms almost always become more efficient, more profitable, financially healthier and increase their capital spending.” . . .
. . . “You certainly have variation – in that it doesn’t always happen – but on average, across countries, across time, the financial and operation performance of privatised firms is significantly improved.”
Opponents of privatisation highlight past failures and use them to argue against any more asset sales.
Prof Megginson shows they are wrong.
That not every asset sale in the past went well is not a valid argument against any in the future.
We should learn from past failures to avoid repeating mistakes but we shouldn’t let them be used to justify opposition to any and all privatisation.