Accounting for differentials in the speed of privaziation: a comparative analysis of Brazil, Mexico and Turkey

Abstract

ABSTRACT The purpose of this study is to explore the underlying reasons for differentials in the speed at which privatization has been implemented in various countries. In particular, this study attempts to explain why privatization in Mexico has proceeded so much more rapidly than in either Brazil or Turkey. The design of this study consists of three main sections. The first encompasses an analytical framework in which a set of five criteria are formulated for the purpose of determining the extent to which the prevailing environment in a given country can accommodate or even facilitate the implementation of privatization. In the section which follows the three case studies are introduced and important aspects of their political and economic development and organization are discussed. Finally, in the third section, the criteria are systematically applied to the three case studies in order to identify the degree to which individual factors have contributed to the relative speed of privatization in each case. The overall findings of this study suggest that the greater speed at which privatization has proceeded in the Mexican case can be attributed to both the unique features of the Mexican political and economic systems, and several other important measures undertaken by President Salinas himself. Perhaps the most important factor leading to the greater speed of privatization in Mexico is the depth of the overall reform program itself. This has essentially provided an atmosphere which has proven more conducive to the implementation of privatization. 11