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In conclusion, there is no straightforward proclamation one can make, as to whether or not Privatisation is bad for the poorest in society. Whether or not it is, depends on the initial conditions prior to Privatisation, how the process of Privatisation was undertaken, and the political and economic environment that prevailed post-Privatisation.Regulation and competition, rather than Privatisation, lead to private sector development and an environment in which equity prevails. There are cases where natural monopolies result from Privatisation, because of significant barriers to market entry, such as economies of scale. In such instances, it is even more important to ensure that robust and autonomous regulatory institutions are forged prior to Privatisation. This way, the price and expansion decisions of the investor will align with the social goals of increased access to the poor, and ensuring prices are not beyond their reach. In order to yield optimum benefits from Privatisation, the following recommendations are suggested The transfer of assets from state entities to private hands should be a transparent exercise, undertaken through a process of competitive bidding. This way, the state will get the best deal possible Effective regulatory bodies should be established before the Privatisation sale, to ensure prices and service quality of private firms are fair, and to promote competition where possible. A regulatory authority may also serve to ensure tax compliance of the newly privatized firm. The tax revenues from the now private entities could greatly aid government’s ability to fund anti-poverty social programs. Such programs may even be of benefit to victims of Privatisation, who lost their jobs as newly privatized entities restructured.


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