Government vs. Private Ownership - A Fresh Look at the Merits of Bank Privatization in Developing Economies

Sean P. Stacy
Vol. 12
October 2012
Page

For more than a generation, the preference for vesting property in the hands of private, rather than government, agents has been thrust upon developing nations by powerful nations and governmental aid organizations alike.This paper explores the validity of the notion that privatization is an unqualified good by examining bank privatization in developing countries. A survey of both the theoretical and empirical literature reveals a case for bank privatization in the developing world that is less than overwhelming.