Postprivatisation

Postprivatisation refers to the period after the transfer of ownership of a state-owned enterprise (SOE) or a state-controlled sector to private ownership, private consortium, or mixed ownership structures. The term encompasses the transition from public administration to market-based governance, and includes the establishment of regulatory frameworks and governance reforms intended to ensure performance and accountability.

Key features include corporate governance changes, new incentives for management, and the creation or strengthening of independent regulators to supervise competition, pricing, and service quality. In sectors with natural monopolies or essential services, regulators may set tariffs, quality standards, and universal service obligations to protect public interests.

Outcomes vary. Some cases show improved efficiency, investment, and profitability, while others experience higher prices, reduced universal service, or job losses. Performance depends on competitiveness, regulatory credibility, asset quality, and the state's retained role in strategic sectors or in public-interest objectives.

Policy tools and models used in postprivatisation include partial privatisation with minority state stakes, public-private partnerships, and performance-based regulation. Governments may maintain golden shares or strategic stakes to preserve oversight, while capital markets and disclosure requirements enhance transparency.

Social and political considerations often influence postprivatisation trajectories, including concerns about equity, employment, regional development, and influence over critical infrastructure. The long-term success of privatization is typically judged by efficiency gains, service access, and sustainable investment rather than short-term gains.