World Bank Remains Fan of Privatization

Despite some peoples best efforts, the World Bank remains a staunch supporter of worldwide privatization. Yes, the Bank did say that privatization was not a panacea and that there were problems in some cases. However, they were quick to point out that privatization “… also that it was not the root cause of these problems. The legally binding contracts and hard budget constraints introduced by private participation flushed into the open problems that had been hidden during the era of public provision. While some governments have not been able to deal successfully with these, these problems will not be solved by a reversion to public provision.” Put simply, Privatization, in other words, exposed the rot that public services had masked. Full-bore privatization — not half-hearted compromises, not a reformed public sector — remains the best course for any country concerned about its citizens.