Privatization

Privatization (from Latin privatus ) in the narrow sense refers to the conversion of public assets to private ownership. In a broader sense is understood with privatization, the transfer of previously state-run activities in the private sector of the economy. A generally accepted definition does not exist, however.

• 6.1.2.1 federal level
• 6.1.2.2 Local level

Conceptual history

The word " privatize " can be detected in German-speaking countries since the beginning of the 19th century. So it appears in the Gottingen scholar ads from 1846: "In no country in the system of privatization of state forests is so widely popular as in the blessed, wooded Oestreich " (p. 203). Contrast, was called " Privatizing " often still, retire to private life, the obligations of official status to escape, etc.

Since the mid-20th century, it is almost always used in the sense of actions in which something " State " is transferred to private before, ie the ownership of real estate or shares. From this, the noun " privatization " was developed.

Theoretical foundations and history

Privatization meet the demands of liberalism by self-responsible, private autonomous organization of the economic process as the basis of the economic system. Already the Classical liberalism and the emergence in the 1930s and 1940s neo-liberalism called for a widespread retreat of the state from the economic activity. Neoliberal ideas have been the concept of the social market economy basis of the economic system of the Federal Republic of Germany, without, however, have developed according to Fritz Rittner and Meinrad Dreher already at this time a complete theory of privatization. A comprehensive privatization policy was first realized in the 1980s in Great Britain under Margaret Thatcher and the United States under Ronald Reagan, based on the liberal economic ideas of Milton Friedman and other representatives of the Chicago School as a theoretical foundation. According Jörn Axel eunuch other hand, is in Germany already in the postwar years of the asset base of the federal and state governments have been significantly reduced. Demands for privatization were raised here by the CDU politicians Ludwig Erhard and Karl Arnold and its implementation has been supported by the Federal Ministry of beneficial ownership of the Confederation as " privatization ministry ".

Types of privatization

With the preamble privatization highly different situations are referred. In the original sense, privatization means the transfer of state property to private owners. This classic, based on property privatization concept was greatly expanded in the recent privatization debate. This extended privatization concept can in principle differ in material, formal or functional privatization.

• Material privatization: the state withdraws from the production of goods and leaves it to the market, in what way and in what quantity produces the corresponding goods werden.Man also referred to as task privatization because responsibilities formerly assumed by the state to be handed over to the private sector. This most extensive form of privatization is also referred to as "real" or as " real" privatization or as " privatization in the strict sense." Material privatizations often done through the sale of public enterprises or other public assets to the private sector. In this case, one also speaks of asset privatization.
• Functional privatization: the state mandated private companies with tasks that were previously fulfilled by the public sector. The State makes use of for the performance of his duties, only the help of private individuals, without this leading to a transfer of public task itself. This form is sometimes considered a " non-genuine privatization". However, it is also argued that it is the functional privatization is a task partial privatization, in which only a "partial contribution with respect to a state task" is outsourced to the private sector, so that this type between "real" and " fake " privatization ranks. To some extent, also distinguishes between "real" and " fake " functional privatization. While with the former outsourcing to purely private agents is meant existing state-owned enterprises are turned on at the latter.
• Formal privatization: a perceived general government task remains continue to be the responsibility of the State, merely the legal form is converted into a company under private law, where state ownership persists. This also corporatisation called form is frequently in the range of general interest is the case when so-called equity companies are set about at the local level. Here, since the ownership remain unaffected, is spoken in this weakest form of privatization by " spurious privatization " or "sham privatization".

Beyond this basic forms, there are a variety of other distinctions, and there are these typings often overlap and smooth transitions. A generally accepted definition does not exist, however. According Jörn Axel eunuch the effort is to clarify the concept of "privatization" a farce when a typing the same phrase confers different and sometimes incompatible significance levels. Therefore, according to Franz -Joseph Peine privatization " degenerated to the keywords, where anything and ultimately nothing can be assigned. "

Privatization and market regulation

Privatization is often brought into close connection with deregulation. However, the relationship between privatization and deregulation is controversial in the literature because of differing Begriffsverständnissen. To some extent under a regulation marktbeschränkende government influence, in particular the nationalization understood. Other authors, in a broader sense meant by a state control (governance), the public interest objectives, such as security of supply used in previously monopolistic industries, but should also realize market competition.

Both privatization and deregulation aimed at streamlining the state. In some areas of public services, however, the question arises whether tasks that remain with the state, despite partial privatization need not be asserted by way of increased regulation. Certainly more liberal - - ​​At least in Germany, the dissolution of state monopolies made ​​forms of regulation required. As long as a public monopoly administration is, there are no market participants that would have to be acted upon by the state. Regulation is understood as an instrument with which the State fails to fulfill its warranty obligation. The " current market conditions " therefore bedürften Johann- Christian Pielow According to according to well matching view in most service areas, " a flanking re-regulation by the State" because of the dominant position of former monopoly companies continue WOULD or eg for power supply networks, the problem with respect to a natural monopoly continues there. In addition, the " cherry picking " ( cherry picking ) should be prevented, in which after privatization only lucrative parts of the business will be continued in neglect of care in the area. However, it should be ensured that a modest re-regulation not envelopes in a re- bureaucratization and so the market forces that would like to deliver them actually inhibits again. On the basis of empirical studies, a positive correlation between privatization and then increasing re-regulation of the research will be accepted for regulatory capitalism. The term re-regulation is the opinion of Fritz Rittner and Meinrad Dreher misleading, since it is, on the whole, acts according to that regulation term that includes any marktbeschränkende state influence to a process of deregulation, because the state regulation of the privatized sector of the economy macroeconomic reduced regulation is compared to the complete retention of a state monopoly.

In the report to the Club of Rome to the limits of privatization scientists describe different runny privatization examples from around the world. After privatization could be successful if the State determines the rules and competition guaranteed. " Good regulation is a prerequisite for successful privatization ," says Ernst Ulrich von Weizsäcker, editor of the report. From a regulatory standpoint, state monopolies may be simply replaced by private monopolies in privatizations why not. Rather, the government should ensure that effective competition.

Review and Empirical Evaluation

According to the master plan for the privatization and investment policy of the covenant of the Federal Ministry of Finance from 1991 to a regulatory benefits resulting as follows:

" In the social market economy basically due to private initiative and private property precedence over state jurisdiction and state ownership (→ subsidiarity principle). Private ownership and private sector, driven by the market and competition and controlled business activity is the best guarantee economic freedom, economic efficiency and adapt to changing market conditions and thus prosperity and social security for citizens. [ ... ] Wherever it is possible, should enter private property to the location of state property in the fullest extent. "

After the Monopolies Commission, one of the key promoters of the German privatization policy conception, would in the private provision of services specialization, rationalization and cost benefits to wearing, bringing connect also a better incentive and sanction system.

Privatization policy is often justified by the economic liberal conviction that the share of the public sector had to be pushed back in favor of the private sector and the private sector performance, as governed by the laws of the market, basically efficient successes. Other authors point out that there have been next to successful privatization also cases in which there were mixed results or even occurred systematic failures.

In economics differ neoclassical models that take into account any transaction costs, transaction costs of economic approaches in their assessment of privatization. While the former generally support the call for privatization arises on the basis of transaction cost approaches a more nuanced picture. Emphasizes the transaction cost economics that the Pareto efficiency of competitive equilibrium could be guaranteed only under unrealistic conditions. Taking into account information and monitoring costs is highlighted about David Sappington and Joseph Stiglitz, that not all privatizations were successful because the influence is related to intra- municipal companies with lower transaction costs.

After Soenke Lehmitz follows an analysis of over 50 studies from five countries where the impact of privatization was seen on the efficiency in different areas, that most studies suggest put a favorability of private production. The study of the American Project on Government Oversight ( POGO ) from the year 2011, however, comes to the conclusion that outsourcing of services in the most expensive for the American taxpayer is ( 33 out of 35) cases investigated, as if these services from government employees would have been rendered.

According to Attac areas of public interest such as education, transport, health care, energy and water supply must not be handed over to the market logic, since they fulfilled tasks that went beyond economic issues, and should not therefore be conducted or assessed according to criteria of profitability. By Peter Erdmeier is noted that politicians could use to enforce election and partisan interests the opportunity to pursue other than profitability targets for the public sector.

Practice of privatization

Situation in Germany

Legal Aspects

State functions

The Basic Law (GG) does not contain a closed catalog of the state tasks. Not based on contractual rights of intervention shall always be subject to government supervision and require collateral ( eg TÜV ). Another limitation for privatization in Germany offers the function of title of Article 33, paragraph 4 of the Constitution, which provides that the exercise of public authority usually members of the civil service is to be transferred. This prevents the police tasks are privatized in the strict sense. Furthermore, in article 14, paragraph 3 and Article 15 of the Basic Law is the possibility of nationalization anchored.

For constitutional reasons, the material privatization limits through compulsory or mandatory state functions - such as in the field of interventional administration - set. This mainly affects tasks that are covered by the state monopoly, such as the judiciary and the military, enforcement and public certification services, the currency essence and tasks of the police. In the area of ​​local self-government privatization a solid core before far-reaching privatization task is protected under German law, so that the result is a (relative ) privatization ban. See also the main article Municipal self-government.

Public duties

In addition, Article 28 determines GG the self-government rights of countries to exercise under the principle of " task finding the right " tasks of general interest and so that any privatization at the local level, for example in the field of water and energy supply make, or by way of Rekommunalisierungen to be reversed. Public tasks (eg tasks of general interest ) must not be handled directly by the State according to the jurisprudence of the Federal Constitutional Court. As far as the state withdraws the form of privatization of the performance of work, he keeps it under circumstances regulatory, monitoring and initial duties whose exact form has to be determined in each specific case.

Examples

Federal level

In the Federal Republic of Germany, several large institutions and the Federal special funds into private legal forms were converted (formal privatization).

• As part of the German railway reform, the German Federal Railways and German Reichsbahn were transferred to the German Bahn AG.
• BFS in the German Air Navigation Services

In addition, in terms of capital were fully or partially privatized:

• As part of the German postal reform, the German Federal Post Office in the German Post AG, the German Telekom AG and the German Postbank AG was divided.
• German Federal Printing (now re-nationalized )
• Lufthansa, VIAG, VEBA, Volkswagen, Hamburg Airport, Federal Gazette, the port of Lübeck society, Fraport, IVG Immobilien

A special historical situation was created by the German reunification. The German Democratic Republic joined the Federal Republic. After the introduction of the D - Mark in the GDR on 1 July 1990, large parts of the state and state-owned enterprises of the GDR in her former room, the Eastern Bloc, not more competitive. The THA privatized many of these companies. 1994, it was divided into several organizations, the most important of which was the Federal Agency for Special Tasks.

Local level

Examples of privatization in the local area include the privatization or partial privatization of public utilities. These include the Berlin Water Works, MVV Energie, which works Neckar Stuttgart, Stadtwerke Essen and Stadtwerke Dusseldorf. Significant private shareholders to fully formerly municipal companies are RWE, Veolia, E.ON and EnBW.

In some citizen initiatives since the disclosure of the privatization contracts and the municipal ownership of privatized municipal services was demanded. An example of a municipal ownership is the sale of Thüga, the Germany 's largest municipal network of local and regional energy supplier, E.ON to a consortium of municipal power company, consisting of the Stadtwerke Group Kom9, enercity ( Stadtwerke Hannover AG), Mainova AG ( Frankfurt) and the N- ERGIE ( Nuremberg). Another example is a popular initiative for municipal ownership in Hamburg, initially the goal of a re of energy networks and the establishment of a "real " city of art, that is, a municipal utility with energy networks has, and from the Taxpayers Association of Hamburg eV in terms of citizen involvement is supported. The city of Stuttgart founded in 2011 specifically Stadtwerke Stuttgart who want to take over the operation of the electricity, gas and possibly also the district heating network in 2014. Thus, the power supply should already after 10 years, based on the privatization of the Neckar Stuttgart works are rekommunalisiert. In Berlin there was on 13 February 2011, a successful referendum on the disclosure of partial privatization contracts at the Berlin Water Works.

Situation in Austria

Fully or partially privatized were the Austrian industrial holding, among other things, OMV AG, VA Tech AG, Böhler -Werke, VOEST -ALPINE STAHL AG, Vamed, AT & S Austria Metall AG, Austria Tabak, Telekom Austria, Austrian State Printing Office, Dorotheum and the Austrian Post.

Situation in Switzerland

In Switzerland, state-owned enterprises find mostly on cantonal and municipal level, the federal government is only in the infrastructure and armaments sector entrepreneurial activity. Many federal and cantonal business operations, especially in the infrastructure and the banking sector have so far been only converted into private-sector legal forms, but not privatized. Examples are the SBB, Swisscom, Swiss Post, RUAG.

Situation in the UK

In Great Britain there was a great wave of privatizations during the government of Margaret Thatcher (1979 to 1990). To date, almost all state-owned enterprises were sold, including without limitation:

The privatization of British Rail was decided by the Railways Act 1993. The main objective of privatization, reduction of government subsidies, has been but misses. The British taxpayer has to pay for the private railway far more than in the days of British Rail today. After an increased incidence of serious train accidents due to failure to maintenance, operation of the stations and the railway network was nationalized again. After the railway accident at Southall in 1997 was the railway accident at Ladbroke Grove on 5 October 1999, 31 dead and 296 injured, the second serious railway accident which occurred on the Great Western Main Line, just a few kilometers east of the first accident. Both railway accidents contributed significantly to sustainable shake public confidence in the privatization of the railways. But it was the railway accident at Hatfield on 17 October 2000 with four dead and 70 injured then led to the collapse of the railway infrastructure company Railtrack plc., Which was dissolved on October 7, 2001 by the Transport Minister Stephen Byers in receivership and on 18 October 2002. On this day, the shareholders resolved under the pressure of events, the voluntary liquidation of the company. The railway infrastructure was sold for 500 million pounds sterling to the newly founded non-profit company Network Rail. The government grants went back to the first years of privatization, but increased due to higher demand for transport to recovery in 2002.

Situation in Greece

Greece had until the end of the 1990s compared to other countries of the then European Community has a relatively high proportion of workers in public enterprises (13.3%). In June 2011, the Athens parliament passed the Law on the Medium-term financial planning for the years 2012 to 2015 detailed privatization goals. Until 2015, by this supposedly " largest privatization program in the world " 50 billion euros to be taken to ensure that the Greek government remains able to act in spite of its immense debt. Beginning of 2012 was to the head of the privatization authority that the numbers at random were defined and that the desired revenue target is unrealistic. 2011 we have been able to occupy only 1.7 billion instead of the planned 5 billion euro.