Privatization in Developing Countries: Its Impact on Economic Development and Democracy

This work concludes that privatization promotes economic development and democracy in developing countries. Several governments have opted for privatization to maximize consumer choice, to promote competition, and to improve the quality and efficiency of goods and services. Many governments in Asia, Africa, and Latin America are cautiously turning state-owned enterprises over to the private sector because of the benefits coming with a free market economy and free enterprise spirit. The case of Zaire shows the failure of state-owned enterprises to meet national economic, social, and political goals. The case of the Cameroon shows privatization at work in a developing country.