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Privatization

Privatization shifts functions and responsibilities, in whole or in part, from government to the private sector. USAID’s involvement in privatization includes three stages:

Rwanda Plant

    pre-privatization (setting up the enabling environment, public awareness campaigns, establishing an appropriate legal and regulatory framework),

    privatization (the actual transfer of assets), and

    post privatization (corporate governance and restructuring, international accounting standards).

With more than 110 activities spread throughout the regions in which USAID works, the emphasis in privatization is changing from one of asset transfer to also privatizing services which have traditionally been managed by the public sector. Examples of such services include telecommunications, tourism, information technology, and transportation. See more on USAID's work with service sector liberalization and trade.

The next generation of USAID privatization support focuses on creative approaches to privatizing services in USAID-assisted countries, and is expected to increase as country requirements for technical support in pre-to-post privatization grows. The relative success in diversifying and adapting privatization technologies across a wide variety of economic conditions, financial, legal and policy structures, has confirmed privatization’s central role in strategies for building sustainable economic growth and trade.

Read reports on USAID's privatization work...


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