Abdul Rahim Abu Shair, OJ
Privatization and development: insights from a holistic approach with special reference to the case of Jordan
, PhD thesis, University of Salford.
After three decades of state intervention throughout the
world the 1980s and 1990s have seen a marked reversal.
Instead of government control and centralized planning
there has been a renewed emphasis on market-oriented
strategy. Privatization constitutes one of the
cornerstones of this strategy.
The relationship between privatization and development is
complex because privatization transforms the institutional
framework through which people usually expound, negotiate,
and promote their individual and group interests.
In theory, privatization should assist in overcoming the
problems of poverty and sustainable development through
the "trickle down" effect. In this thesis, however, it
will be argued that privatization in developing countries
and in Jordan as a case study would not exclusively lead,
on the grounds of efficiency, to a successful cure for the
economic ills of those countries.
The thesis also developed and applied to Jordan a
methodology of analyzing privatization which departs from
the mainstream view. This methodology considers
privatization as one part of a whole system and can be
understood within the context of development only in terms
of the whole system. Thus, privatization is linked as an
economic, social and political phenomenon with decentralization, participation, and development.
The thesis concluded that development may mean
decentralization, which certainly means participation, but
privatization will not necessarily secure participation.
It depends on how it is designed and implemented. If
privatization is to be sustainable and people-centred, it
has to be gradual, relatively crisis-free, untroubled and
unenforced, marked by the fusion of collective
participation from below (e.g., grass roots) and
individual participation in the market place. This will
depend exclusively on the commitment of the decision
makers and their vision of empowering the people.
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