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Case study (2) Focus on Privatisation

Africa Reaping Dividends from Privatization

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In addition to opening up the economy to foreign direct investment many African countries have undertaken a wide programme of privatization.

  1. Explain what is meant by privatization.
  2. Is a policy of privatization more likely to be associated with a market oriented or interventionist strategy? Explain your answer.
  3. Identify the potential benefits to the country that the article suggests occur when privatization takes place.
  4. Examine whether privatization has been successful in the cases highlighted in the articles.
  5. Analyse the potential hazards from a programme of privatization in developing countries.