Effectiveness of Privatization Based on Government’s Economic Policy and Strategies Towards Economic Growth and Its Income Distribution

Abstract

The purpose of this study is to assess the success of privatization in terms of economic growth, taking into account regional disparities as well as its effects on distributional equity. Regardless of regional differences, the study finds that in order for privatization to be successful and effective, the roles and powers of government and private entity participants must be defined, and legal, regulatory, and enforcement mechanisms must be in place to ensure that the goal of economic growth is balanced. Economic growth, on the other hand, does not guarantee income distribution equality. The advantage of asset transfer toward equity distribution is difficult to quantify because the transfer only affects a small number of people. The researcher argues that more research is needed to conclusively verify income equality.

Keywords: privatization, public and private sector enterprises, privatization law