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Article: The fiscal impact of privatisation in Latin America.
- Article from:
- Journal of Development Studies
- Article date:
- June 1, 1995
- Author:
CopyrightCOPYRIGHT 1995 Frank Cass & Company Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTRODUCTION
State enterprises, privatisation, and fiscal policy interact in several ways. On the one hand, losses by state enterprises are part of the fiscal problem and fiscal crises push privatisation toward the top of the policy agenda. In the late 1970s, state enterprises generated average deficits of four per cent of GDP in developing countries (Floyd [1984: 144-5] as cited in Waterbury [1992: 190]). Moreover, fiscal crisis itself usually further impedes attempts to control state enterprises and their losses by weakening the state's administrative and monitoring capacities, strengthening centrifugal tendencies within the state, and exacerbating bureaucratic ...