Cover -- Title Page -- Contents -- Latin American Development Forum Series -- About the Contributors -- Foreword -- Acknowledgments -- 1 The Truth about Privatization in Latin America -- Introduction -- A Brief Look at the Privatization Experience around the World -- Which Firms Are Up for Sale? Concerns about What Is Privatized -- Sample Selection Bias -- Noncomparable Data -- Evidence from Comprehensive Data Samples on Privatization in Latin America -- Raw Data -- Adjusted Ratios -- Who Wins and Loses from Privatization? Concerns about Exploitation of Market Power, Workers, and the Government -- Government Revenues -- Worker Exploitation -- Abuse of Market Power and Consumer Exploitation -- Dimensions of Consumer Welfare beyond the Effect on Prices -- What Is the Best Approach for Selling? Concerns about the Privatization Process -- The Method of Privatization -- Restructuring Firms before Privatization -- Type of Privatization Contract -- Complementary Policies: Reregulation and Corporate Governance -- Privatization, Reregulation, and Deregulation -- Privatization and Corporate Governance -- Conclusions -- Notes -- References -- 2 The Benefits and Costs of Privatization in Argentina: A Microeconomic Analysis -- Introduction -- The Argentine Privatization Program -- The Sample -- Results for Nonfinancial Firms -- Results for Banks -- Privatization of Water and Sewerage Companies: Access to Services and Welfare -- Privatization and Worker Displacement: Wages and the Distribution of Welfare -- Privatization and Worker Displacement -- The Long-Term Impact of Job Displacement on Earnings -- Conclusions -- Appendix 2A: Sector Structure and Data Sources -- Gas -- Telecommunications -- Electricity -- Water and Sewerage -- Airlines -- Railroads -- Postal Services -- Oil -- Other -- Banks -- Notes -- References.

3 Privatization and Firm Performance in Bolivia -- Introduction -- Privatization: Conceptual Framework -- The Objectives Pursued with Privatization -- The Arguments for and against Privatization -- Empirical Studies on Privatization -- The Bolivian Privatization Program -- First Wave -- Second Wave -- Third Wave -- Reforms in Specific Sectors -- Electricity -- Hydrocarbons -- Telecommunications -- Water -- Data Sample -- Results -- Raw Data -- Industry-Adjusted Data -- Conclusions -- Notes -- References -- 4 Costs and Benefits of Privatization: Evidence from Brazil -- Introduction -- The Brazilian Privatization Program and the Literature -- An Overview of Privatization at the Federal Level -- The Brazilian Literature on Privatization -- The Data Set and the Variables -- Empirical Analysis -- Mean and Median Tests -- Profitability -- Operating Efficiency -- Assets and Output -- Finance and Shareholders -- Net Taxes -- Panel Data Analysis -- The Model and Variables -- Empirical Results -- Profitability -- Operational Efficiency -- Assets and Output -- Other Variables in the Model -- Other Benefits and Costs of the Program -- Employment -- Prices -- A Social Cost: No Democratization of Capital Ownership -- Effects on the Development of Capital Markets -- A Macroeconomic Cost: No Effective Debt Reduction and Delayed Devaluation -- Privatization as a Tool for Imposing Fiscal Discipline: The Case of the States -- Public Opinion -- Perspectives -- Summary and Conclusions -- Appendix 4A -- Appendix 4B -- Appendix 4C -- Appendix 4D -- Notes -- References -- 5 The Effects of Privatization on Firms: The Chilean Case -- Introduction -- Privatization of SOEs -- Privatization of Regulated Sectors -- Privatization of Utilities -- The Privatization of Infrastructure -- A Brief History of the Privatization of Public Enterprises -- The Era of State Intervention.

The First Round of Privatization -- The Crisis of the Early 1980s -- The Privatization of the Historic SOEs (1985-89) -- Privatization during the 1990s -- Data on Privatized Chilean Firms -- Data Problems -- Treatment of Mergers and Divestitures -- Data Adjustments -- Effects of Privatization on Chilean Firms -- Profitability -- Efficiency -- Assets and Investment -- Productivity -- Employment -- Privatization of Regulated Sectors: The Efficiency of Privatized Utilities -- The Privatization Process -- The Regulatory Framework -- The Electricity Sector -- Telecommunications -- Evaluation of Privatization in the Regulated Sectors -- The Electricity Sector -- Telecommunications -- Infrastructure Franchises -- Highways and Airports -- Concessions for Port Management and Operation -- Conclusions -- Appendix 5A -- Notes -- References -- 6 Privatization in Colombia: A Plant Performance Analysis -- Introduction -- The Deregulation and Privatization Program in Colombia -- Privatization in Manufacturing -- Privatization of Natural Gas and Gasoline Distribution -- Industry Restructuring and Privatization in the Power Sector -- Performance Analysis -- Data Sets -- Changes in Performance in Manufacturing -- Changes in Performance in the Power Sector -- An Analysis of the Productive Efficiency of Thermal Plants -- Econometric Analysis of IFI Manufacturing Plants -- Power Plants: Statistical Analysis of Efficiency Scores -- Concluding Remarks -- Appendix 6A -- Appendix 6B -- Appendix 6C -- Performance Indicators for IFI Firms: Definitions and Methodology -- Appendix 6D -- The Power Sector Indicators and Data Sets -- The Data Sets -- Appendix 6E -- Notes -- References -- 7 Privatization in Mexico -- Introduction -- The Mexican SOEs and Privatization -- The Growth of the SOE Sector -- The Privatization Program -- The Benefits of Privatization -- Raw Data.

Industry-Adjusted Data -- Market Power -- Transfers from Workers -- Services and Access -- Fiscal Impact -- Allocative Efficiency -- Dos and Don'ts in Privatization -- Firm and Industry Characteristics -- Auction Process and Requirements -- Prior Restructuring Policies -- Complementary Policies of Privatization -- The Type of Contract Written -- Deregulation -- Reregulation -- Privatization and Corporate Governance -- Conclusion -- Appendix 7A Description of Variables -- Notes -- References -- 8 Peruvian Privatization: Impacts on Firm Performance -- Introduction -- The Privatization Process -- Methodology -- The Data -- Empirical Results -- Results for All Privatized Firms -- Results for Public Utilities Sector -- Results for the Financial Sector -- Employment -- Conclusions -- Appendix 8A -- Data Sources -- Other Data Sources -- Appendix 8B -- Appendix 8C -- Appendix 8D -- Notes -- References -- Acronyms and Abbreviations -- Index -- Back Cover.