The Role of the State in Economic Development and the Justifications for Privatization in Developing Economies

The Role of the State in Economic Development and the Justifications for Privatization in Developing Economies

maLiha jabar Abid
AL-QADlSIYA UNIVERSITY

Abstract

Began to use the word privatization ((Privatization)) in the United Kingdom at the beginning of the eighties. The proportion of the novelty of the concept of privatization, there is no specific definition in dictionaries of English, and soon moved the concept of privatization to the developed and developing countries, which have been applied methods and different ways to privatize 0 Accordingly, the privatization to include several methods and levels applied in developed and developing countries. There are a number of writers are talking about privatization influential ((Effective Privatization)), and these include for them all means and methods of privatization, which put an end to state ownership in whole or in part, and shift assets wholly or partly for the private sector, as happens in these methods transformation property ((Transfer of Ownership )). There are a number of other book adds to the methods of privatization that affect the property other methods lead to a shift in the management of public sector institutions ((Transfer of Control)). And that may not necessarily require a shift in the ownership of the state. The third level of the concept of privatization Vicef comprehensive and adds to the methods that affect the ownership or management methods other aims in its entirety to the introduction of management methods of the private sector for the management of public sector organizations, this definition means that privatization does not necessarily require any change in ownership or management. In developing countries, the objectives of the privatization policy differs largely from those in developed countries, as the main objective of the application of privatization programs in developing countries is to try to remedy the economic crisis through programs of economic stabilization and structural adjustment, and does this mean that privatization is an integral part of the policies of reform programs Economic and structural adjustment, and aims mainly to cure the economic crisis by correcting the effect of the negative financial performance of public sector institutions on the state budget ((((Public Financial Balance, by reducing her financial support and increase revenue, in addition to raising the efficiency of institutions specifically, assuming that the private sector is more efficient than the public counterpart, and thus will lead to an increase in the rate of economic growth for the state.

DOI:10.52113/6/2014-4-9/1-49

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