Balancing Opposition and Economic Benefits in Privatization Policy: An Analysis of Brazil, South Africa and India

Privatization of state-owned corporations can benefit an economy in many cases. However, some segments of society lose from privatization and privatization is generally an unpopular policy even among segments of society that are not directly affected. Successfully implementing privatization requires overcoming these sources of opposition while not sacrificing the economic benefits of the policy. This paper analyzes privatization across Brazil, India and South Africa to understand how these countries implemented privatization and what measures were effective in overcoming opposition without sacrificing efficiency. Based on the case study analysis, Government propaganda on the costs and benefits of privatization policy accompanied by compensation packages to vested interests (primarily labor) that are directly linked to the continuation of the privatization program were the most effective means of overcoming opposition while maintaining the efficiency of the policy.