Why EO in privatization?

[Dan Bell <dbell@kent.edu>]

Dear EOPrivers:

There is a discussion going on in the ECONOMICS OF
OWNERSHIP group which considers issues like
which forms of ownership are better, ie, private
concentrated, state, stakeholder, employee etc.

For the EMPLOYEE OWNERSHIP IN PRIVATIZATION group,
I would like to start from the assumption that, at
least in some cases, we think an ownership stake
for employees in the privatized enterprise is a
good thing.

Please answer a couple of questions:

1. Why?

 Is it because we want employees to accumulate capital
 so they are better off?

 Is it because we want privatization to be successful, and
 we believe an ownership stake for employees will make
 this happen?

 Are there any OTHER possible reasons why?

2. From each of the different perspectives of (1)
   government, (2) employees (and their union leadership),
   and (3) a private investor, what FACTORS SHOULD BE
   CONSIDERED which determine whether to include or
   NOT include employee ownership in a particular
   privatization process?

I look forward to your input!

--
Dan Bell
International Program Coordinator
Ohio Employee Ownership Center
Kent State University
Kent, OH 44242
(330) 672-3028
(330) 672-4063 fax
dbell@kent.edu
http://www.kent.edu/oeoc/