Privatization ‐ The myth of free market orthodoxy in sub‐Saharan Africa

Abstract

The phenomenal spread of privatization initiatives in sub‐Saharan Africa since the 1980s created the impression that public infrastructure divestiture is a shortcut to economic growth and development. This has proven not to be the case due to the lack of enabling institutional prerequisites. It appears the case that while much faith is put in the potency of the free market, little thought is generally given to the institutions required for markets to perform their function. Accordingly, this paper discusses some of the embedded institutional failures that have made free‐market development policies a mirage in many sub‐Saharan African countries. Principally among these are corruption and government failures. To check these, it makes more sense to re‐direct attention to the sources of failure rather than the free market ideological thrust.

Citation

Nwankwo, S. and Richards, D.C. (2001), "Privatization ‐ The myth of free market orthodoxy in sub‐Saharan Africa", International Journal of Public Sector Management, Vol. 14 No. 2, pp. 165-180. https://doi.org/10.1108/09513550110387453