Thomas Wälde

Restructuring and privatization: viable strategies for state enterprises in developing countries?

Abstract Too often, State oil companies are inefficient monopolies, vulnerable to government interference and tempted to consume an inordinate part of the oil rent they generate. While outright privatization may not be feasible for political, cultural or economic reasons, selling part of the companys ownership to local or foreign stockholders, transnationalization, and entering into joint ventures with foreign companies could be ways to increase the efficiency of these Stateowned enterprises. In every case, the solution lies in increasing the competition to which the company is exposed.