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Management article
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Reference no. 92107
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1992

Abstract

In its successful efforts to sell state-owned industries during the 1980s, the Thatcher government in the United Kingdom learned that privatization is not only an end in itself but can also transform public attitudes toward ownership. Privatization produces improved performance and, among politicians, a greater focus on government''s role as a regulator, rather than owner, of industry. But in the course of privatizing, conflicts arise that governments must work hard to overcome.

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Abstract

In its successful efforts to sell state-owned industries during the 1980s, the Thatcher government in the United Kingdom learned that privatization is not only an end in itself but can also transform public attitudes toward ownership. Privatization produces improved performance and, among politicians, a greater focus on government''s role as a regulator, rather than owner, of industry. But in the course of privatizing, conflicts arise that governments must work hard to overcome.

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