Friday, December 14, 2018
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Privatisations 2

in this issue

Pedro Páez Pérez Nel. Associate Professor, School of Public Administration ESAP, Bogotá, Colombia

The crisis of the substitution model in Latin America and external debt during the 80s led to a series of measures imposed by multilateral lending institutions such as the World Bank and the International Monetary Fund. The macroeconomic adjustment and structural transformation sought to make companies relatively protected from international competition with import substitution in economies more open to trade.

La Marea.- The balance of the management of the crisis is well known. The Popular Party government dodged a full intervention of the country, the same as Greece or Portugal, although requested a rescue for banks; the risk premium has dropped to minimum, and the economy grows at a moderate pace. By the way, the crisis has left us with 5.6 million unemployed, a tax increase -especially the indirect ones like IVA- strangling a broad strata of society, and a multimillion-dollar injection of public money to clean up the financial sector. This bailout has helped bring Spain's public debt to 100% of GDP, that is to say, all the wealth produced in the country in a year.

José Moisés Martín Carretero. Economist and member of Economists Against the Crisis

Strictly speaking, Spain has not a public bank, although it did have. The privatisation of Argentaria in the 90s ended with a process of liberalization and privatisation of the Spanish banking sector, thus subsuming it in the Banco Bilbao-Vizcaya, a conglomerate of financial institutions such as the Mortgage Bank, Banco Exterior de Spain or the Industrial Credit Bank.
 
José Francisco Bellod Redondo. Doctor in Economics. Research Group "Economy, Planning and the Environment" at the Polytechnic University of Cartagena

Savings banks have been the silent victims of the drastic financial reforms implemented since 2009 as part of the strategy of the Spanish governments to tackle the crisis. The data are eloquent enough: if in 2008, the savings banks sector was composed of forty-six entities, there are currently only five.

 

Juan Torres López. Professor of Applied Economics at the University of Sevilla

In recent years, governments of neoliberal inspiration have carried out liberalisation and privatisation of many old companies and utilities. The reasons that have been given to justify them have always been the same: the state is a bad businessperson and provides goods and services in worse conditions than private enterprise. If services such as education, health, emails, television, communications, energy, transport, etc. are privatised, private initiative will surely supply them at the best price, with more competition, more innovation and lower cost for society and for everyone.
Javier Rey del Castillo. Doctor in Medicine and Surgery from the Autonomous University of Madrid. Pedro Rey Biel. Doctor in Economics from the University College of London

The debate on privatisation of health care in Spain oscillates between two extremes: those who believe that any change in the form of management of public services to replace the "administrative" management hides an attempt to subject the private interest to them, and those who insist that no organizational or managerial change may be considered privatizing services while public funding is maintained.
Juan García. Member of Atacc Catalunya. Ricardo Gómez. Member of Atacc Catalunya in Madrid

"End This Depression Now!" is the title of Nobel prize-winner Paul Krugman's book, published in 2012. Nevertheless, the crisis continues, because the policies that lengthen it are very useful. The perfect excuse for cuts / privatisation. In a process that, unless public outrage retracts, advances inexorably.
Isabel-María García-Sánchez, José-Manuel Prado-Lorenzo and Beatriz Square-Ballesteros. Professors at the University of Salamanca

Throughout history, the concern of governments has been focused on how to provide reasonable public services to all citizens at an acceptable cost. The Public Sector arises as a mechanism to combat the lack of interest from the private sector to establish business projects related to the provision of universal services at social prices. However, excessive socialization could highlight the problems of efficiency and effectiveness of large bureaucracies.

Alejandro Inurrieta. Professor and Director of the School of Finance Madrid

The privatisation of public services is a phenomenon that is Europe-wide after decades of monopoly in the major socio-sanitary supply areas, and also in transport and culture. Neoclassical British influence in university teaching and the excuse of public deficit are facilitating the transfer of public monopolies to new private monopolies, with succulent business for these companies.

Carmen.P.Flores

When we chose the theme of Privatisation for TEJ, we were sure that it would go a long way, so much so that we had to make two parts of it, and I am sure that it could even make for a few more editions. But for now, we leave it the way it is, and time will tell.

  

Carmen.P.Flores

When we chose the theme of Privatisation for TEJ, we were sure that it would go a long way, so much so that we had to make two parts of it, and I am sure that it could even make for a few more editions. But for now, we leave it the way it is, and time will tell.

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