What Does Privatisation Achieve?—A Comment on Quiggin

Abstract John Quiggin's ‘Does Privatisation Pay?’ is critically assessed in this short article. The following issues are specifically addressed: un-derpricing, sovereign risk, the equity premium, fiscal illusion, welfare considerations, and the efficiency of private and public enterprises. The article concludes that privatisation need not be a poor economic bargain for the community and that it ought to be considered on a case-by-case basis.