Privatisation leads to profitability: report

Sweden's former state-owned enterprises have become more profitable and effective when privatised, according to a report from the Ministry of Enterprise, Energy and Communications (Näringsdepartementet).

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.

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