Privatizing Monopolies: Lessons from Telecommunications and Transport Sectors in Latin America

Taking the telecommunications and transport sectors as examples, this text examines the process of privatization in Latin America. It looks at why governments privatized these sectors, what strategies they used to divest enterprises, why private investors were involved, and, most importantly, the effects on performance. Changes in managerial behaviour, related to the process of privatization, are seen as explaining the outcome in terms of efficency and productivity. The text, by analyzing the experiences of several countries, aims to offer insights for other countries, as well as for the privatization of other state sectors.