RE: state's refusal to sell

["Binns, David M." <dbinns@fed.org>]

In a country that lacks a well-developed market, selling to employees may
just result in transferring ownership from a non-market-based government
company to a non-market-based private company. This was part of the problem
in Russia.

> -----Original Message-----
> From: E.Poutsma [SMTP:E.Poutsma@bw.kun.nl]
> Sent: Thursday, March 23, 2000 9:48 AM
> To:   'EOpriv@cog.kent.edu'; Dan Bell
> Subject:      RE: state's refusal to sell
> 
> Dan
> 
> In the Dutch cases the main reason NOT to sell is the situation that new 
> privatised company has not enough competitors; prevention of private 
> monopoly.
> Other Dutch experiences reflects the second reason mentioned by Raoul
> 
> Erik
> 
> -----Oorspronkelijk bericht-----
> Van:  Rahul Varman [SMTP:rahulv@iitk.ac.in]
> Verzonden:    donderdag 23 maart 2000 5:33
> Aan:  Dan Bell
> CC:   eopriv@cog.kent.edu
> Onderwerp:    Re: state's refusal to sell
> 
> Looking at the Indian experience, two reasons seem primary to me:
> 1. IDEOLOGICAL
> The govt. is basically uncomfortable in giving ownership to the employees
> as an idea and has enough of excuses to offer: lack of competence, 
> unfriendly
> law and financing bodies, unhelpful bureaucracy,etc.
> 2. PRIVATE INTERESTS
> Officials have a vested interest in selling these assets cheap, almost at
> a throw away prices, to the private sector.
> 
> The two work in combination, especially today when socialism is supposed
> to be something bad, and '1' is associated with it, and 'privatisation' is
> supposed to be the panacea of all ills of the PSUs and is primarily
> associated with '2'.
> 
> Rahul
> ========================================================================  
> ======
> | Rahul Varman                                        email:
> rahulv@iitk.ac.in
> | Assistant Professor 
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> 
> On Wed, 22 Mar 2000, Dan Bell wrote:
> 
> > I am trying to compile a list of reasons why the state
> > would NOT want to sell a government owned enterprise or
> > service to the employees, assuming it was planning to
> > privatize the operation anyway. Do you have any ideas?
> >
> > Thanks.
> >
> >
> > --
> > 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/
> > http://cog.kent.edu
> >
> >