Was privatisation necessary and did it work? The case of South Africa

Pitcher, Anne

doi:10.1080/03056244.2012.688803

Cited by 16 publications

(11 citation statements)

References 29 publications

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“…Due to the significance of this period, many studies on the sap and its affiliate programmes have been conducted within this timespan (usually between 1980 and 2010). For instance, Pitcher (2012), examining the adoption and outcomes of privatisation policies in South Africa, looked at the years from 1994 to 2010, while Mitchell (2006) studied the economic recovery programmes in Ghana and Tanzania between 1986. Also, Breen and Doyle (2013 assessed the determinants of privatisation across seventy-seven developing countries over the period of 1998 to 2008.…”

Section: Methodsmentioning

confidence: 99%

Privatisation Policy and the Ghanaian Gold Mining Industry

Oppong

2022

Afr. Rev.

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The World Bank and International Monetary Fund (IMF) help ailing developing economies to address their debts and economic crises. To receive this help, however, these international financial institutions (IFI s) have in the past demanded reforms, termed Structural Adjustment Programmes (SAP). One of the SAP policies has been the privatisation of state-owned enterprises (SOE s), which Ghana embraced and implemented from 1983. This article evaluates Ghana’s privatisation of the Ghanaian gold mining industry (the second-largest foreign-exchange earner and major beneficiary of the policy). Using predominantly academic and popular literature, data from the Ghana Chamber of Mines and insider accounts, this study reveals that the policy has resulted in benefits (organisational and national gains) and costs (social and national costs). The article calls on the World Bank/IMF and the gold mining industry to renew their commitment to the recognition of the social and environmental benefits to the citizens.

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Section: Methodsmentioning

confidence: 99%

Privatisation Policy and the Ghanaian Gold Mining Industry

Oppong

2022

Afr. Rev.

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“…Corruption is high and seen as pervasive and systemic (Merchant, 2016). Political patronage, favoritism and nepotism are rampant (Pitcher, 2012). The well-studied link between destructive rent-seeking, poor economic performance and extremely high levels of inequality is clearly visible (Bhorat et al, 2014).…”

Section: South Africamentioning

confidence: 99%

Societal Inequality, Corruption and Relation-Based Inequality in Organizations

2021

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Our paper contributes to emerging management research on the effects of societal inequality. It aims to study the relationship between societal-level inequality and perceived unequal HR practices within organizations based on relationships which we term “relation-based inequality” (RBI). We further examine the moderating effect of country corruption on the RBI-employee commitment link. Thus, whereas previous research has looked at single countries, there is still much to know about societal effects of inequality and corruption on employee perceptions and attitudes at work across countries. By surveying 691employees from five countries and using country-level indicators we take a first step in this direction, and establish that inequality (income, health and education) is linked to higher levels of relation-based HR practices. We also show that the effect of RBI is different for continuance, affective and normative commitment, and contingent on country corruption levels.

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“…In 2002, the 20% interest was repurchased at a substantial discount to its original sale price, and SAA was extracted from the commercial supplier contracts with companies in the SEP group and aircraft financing transactions were unwound (Radebe 1999b (Pitcher 2012:244). The state's increasing dependence on parastatals is the result of 'persistent concerns over equity, preferential procurement, and job losses' (Pitcher 2012).…”

Section: Minority Partial Privatisation Of South African Airwaysmentioning

confidence: 99%

Options for the restructuring of state ownership of South African Airways

Vermooten

2018

Journal of Transport and Supply Chain Management

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BackgroundA salient element of the economic reform of air transport policy from a monopoly market (in which a state-owned enterprise [SOE] has a sole franchise and is protected from competition) towards a competitive market with competing operators relates to the ownership of the SOE, which affects its ability to obtain funding and to compete as well as its behaviour in the market.Regulatory reform in Organisation for Economic Co-operation and Development (OECD) countries reflects a shift from using public policy instruments, such as public ownership of enterprises or restrictive economic regulation, to a greater reliance on market mechanisms and incentives to pursue consumer welfare, industrial and employment objectives (Gönenc, Maher & Nicoletti 2000:5).The International Civil Aviation Organisation Secretariat (ICAO Secretariat) reported that the privatisation of government-owned airlines was one of the 'pre-eminent transformations in air transport' (ICAO Secretariat 2016). The ICAO Secretariat found that the motives for airline privatisation were 'highly diverse' and ranged from 'purely economic considerations' including the improvement of 'operating efficiency and competitiveness' to a more 'pragmatic desire to reduce the heavy financial burden imposed by state-owned airlines on governments' (ICAO Secretariat 2016). The growth in privatisation and transnational ownership results from financial problems faced by many governments and state-owned airlines (UN ESCAP 2005:171).Contrary to the 1996 White Paper on Transport Policy statement, which envisaged a 'reduced direct involvement in operations and in the provision of ... services, to allow for a more competitive environment' as well as the trends identified by the ICAO Secretariat, the South African government increased the scope of its operations to cover all airline business areas Background: South Africa adopted an economic policy that included both deregulation and privatisation in line with the 1980s' global trends. Economic deregulation of the domestic air transport market was implemented in 1991 and partial privatisation of South African Airways (SAA) 8 years later, in 1999. This was reversed in 2002. SAA's poor financial performance since 2012, its insolvency and future funding needs resulted in mixed messages on the future ownership of SAA. Since 2004 the policy of full ownership of state-owned enterprises (SOEs) ruled out SAA's privatisation. SAA's escalating losses prompted the Minister of Finance and National Treasury to favour the introduction of a strategic equity partner (SEP) to invest in a minority shareholding in SAA.Objectives: This article examined options for the restructuring of state ownership of stateowned airlines in South Africa.Method: Contemporary privatisation trends and the level of state ownership of airlines in Europe and elsewhere were identified. The preferred methods of airline privatisation and their economic benefits were determined.Results: Contrary to the freeze of privatisation in South Africa, increased trends in priv...

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Was privatisation necessary and did it work? The case of South Africa

Cited by 16 publications

References 29 publications

Privatisation Policy and the Ghanaian Gold Mining Industry

Privatisation Policy and the Ghanaian Gold Mining Industry

Societal Inequality, Corruption and Relation-Based Inequality in Organizations

Options for the restructuring of state ownership of South African Airways

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