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By Osama J. A. R. Abu Shair (auth.)
Establishing a linkage among privatization and improvement is turning into more and more very important to decision-makers, economists, and political scientists. This booklet hyperlinks privatization as an financial, political, and social phenomena with participation, decentralization, and improvement. It exhibits that privatization has not often lived as much as the perfect of producing sustainable improvement. partially 1 the writer seems to be on the dating among privatization and improvement in idea and perform whereas partly 2 the case of Jordan highlights the problems decision-makers face in imposing privatization.
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E. opportunistic behaviour) (North, 1989, p. 1320). Effective government is, therefore, an essential factor in economic performance, but the problem with the state is that the rise of state power leads to the production of an inefficient structure of property rights and with it an unequal distribution of coercive power to the advantage of special interest groups. There are two reasons for such behaviour. The first is that an efficient property rights system will require higher transaction costs which go against the rulers' objective of maximizing revenues.
Despite that it is important to examine the performance of SOEs to determine if the empirical evidence provides support to the privatization advocates who believe in the superiority of private ownership. 4 THE PERFORMANCE OF SOEs The proponents of privatization often argue that the financial record of public enterprises world-wide is in itself evidence for the necessity of privatization. Between 1989 and 1991, public enterprises' financial losses as a percentage of GDP constituted 9 per cent in Argentina, 8 per cent in Yugoslavia, and on average more than 5 per cent in some Mrican countries.
Thus, high growth rates through the factors of accumulation, allocation, and productivity growth has to be understood through the study of the institutional designs and the historical institutional changes which have provided the basis for the East Asian Miracle (Page, 1994, p. 624; Kwon, 1994, p. 660). In a recent study for the World Bank (1993), entitled The East Asian Miracle: Economic Growth and Public Policy, World Bank economists concluded that the main reasons behind the miracle in the high performing Asian economies were the employment of the 'market-friendly approach' and 'getting The Role oj the State in Development 27 the basics right'.