Privatisation leads to profitability: report
TT/Charlotte West · 29 Jun 2009, 13:53
Published: 29 Jun 2009 13:53 GMT+02:00
The report, authored by Henrik Jordahl of the Research Institute of Industrial Economics, concludes that there are significantly more profits to be made for state-owned companies and employees by transitioning to private ownership – especially in conjunction with competitiveness-boosting reforms.
Minister for Local Government and Financial Markets Mats Odell backs Jordahl's findings.
“Sales of state-owned enterprises undertaken by the government during this term have had positive effects for the public purse and to strengthen government finances,” Odell said in a statement.
The report also states that few studies have been done showing the effect of privatisation in Sweden.
“Despite comprehensive privatisation under both centre-right and Social Democratic governments since the beginning of the 1980s, there is a dearth of more comprehensive academic studies. This is a largely an uncharted area for Swedish academics that I believe deserves to be studied,” said Odell.