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What are the reasons for privatization?
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countries privatize because ownership is signficant determinantof enterprise performance.In both developed and developing countries,good SOE performence has been very difficult to bring about,and even harder to sustain. Governments facing financial crisis often try to improve performance by bringing in new and dynamic mangers, and paying them incentive salaries. and they grant managers autonomy to set prices and hire and fire, and agree to overdue tariff increases and payment of past due bills. These measures often have a positive effect, but as the crisis dissipates, so does political resolve.
First answer by ID1049036008.
Last edit by ID1049036008.
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