Governance, Regulation, and Privatization in the Asia-Pacific Region
Takatoshi Ito and Anne O. Krueger
Abstract
Over the last twenty-five years, there has been an acceleration in the move from government regulation towards privatization. This book provides a thoroughgoing account of the relative success of the different approaches to privatization as undertaken in Korea, China, Australia, and Japan. In most contexts, privatization is expected to yield greater efficiency and cost effectiveness while avoiding the corruption and bloated budgets of government regulation or monopoly control. But broad-scale privatization, if ill designed, has also yielded its share of difficulties in East Asia. Privatization ... More
Over the last twenty-five years, there has been an acceleration in the move from government regulation towards privatization. This book provides a thoroughgoing account of the relative success of the different approaches to privatization as undertaken in Korea, China, Australia, and Japan. In most contexts, privatization is expected to yield greater efficiency and cost effectiveness while avoiding the corruption and bloated budgets of government regulation or monopoly control. But broad-scale privatization, if ill designed, has also yielded its share of difficulties in East Asia. Privatization has sometimes has created a vacuum in corporate governance for some of the region's most important industries and, in some cases, merely reinstated the monopoly-like configurations. The chapters presented in this book discuss the experiences of privatization in several industries, including railroad and telecom, corporate governance problems, accounting issues, and challenges for the future in East Asian countries. The first section is theoretical in nature and proposes boundaries among government protection, market freedom, and shareholder expectations. The second part is constituted by country case studies, beginning with an analysis of both the Korean financial crisis that followed its 1997 law to privatize large, public sector corporations and the new ways Korean corporations finance themselves. Following is an evaluation of China's approach to privatization, with an in-depth look at the financial transitions of companies slated for initial public offering.
Keywords:
government regulation,
privatization,
efficiency,
cost effectiveness,
corruption,
monopoly control,
East Asia,
corporate governance,
market freedom,
shareholder expectations
Bibliographic Information
Print publication date: 2004 |
Print ISBN-13: 9780226386799 |
Published to Chicago Scholarship Online: February 2013 |
DOI:10.7208/chicago/9780226386966.001.0001 |