slide1
Download
Skip this Video
Download Presentation
Keith Jefferis Comments on: “Privatisation – Cross Country Experiences” September 17, 2009

Loading in 2 Seconds...

play fullscreen
1 / 20

Keith Jefferis Comments on: “Privatisation – Cross Country Experiences” September 17, 2009 - PowerPoint PPT Presentation


  • 60 Views
  • Uploaded on

Keith Jefferis Comments on: “Privatisation – Cross Country Experiences” September 17, 2009. Structure of Presentation. Introduction Comments on Dr Steytler’s Paper Elaboration of Privatisation issues in the banking sector in Africa. Introduction.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Keith Jefferis Comments on: “Privatisation – Cross Country Experiences” September 17, 2009' - teagan


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Keith Jefferis

Comments on: “Privatisation – Cross Country Experiences”

September 17, 2009

structure of presentation
Structure of Presentation
  • Introduction
  • Comments on Dr Steytler’s Paper
  • Elaboration of Privatisation issues in the banking sector in Africa
introduction
Introduction
  • Privatisation now well established on the policy agenda – and plenty of evidence against which to evaluate experiences
  • To what extent has global financial and economic crisis changed the environment for privatisation?
comments on the paper
Comments on the paper
  • Comprehensive review of global privatisation developments
  • Good use of WB privatisation database
    • Privatisation alive and well
    • Maybe a pause due to global crisis
  • Useful summary of privatisation impact
    • In general, positive macro, micro and welfare impacts
  • No major disagreements – a few suggestions for improvement or follow-up
presentation of data
Presentation of data
  • More analysis and comparison of regional trends in WB database
  • Presentation of annual regional totals by both value and number
  • Use graphs – for example
future privatisation prospects
Future Privatisation Prospects
  • Is the slowdown in privatisation during the crisis temporary or more permanent?
  • Is the stock of SOEs slated for privatisation becoming exhausted?
  • Is the form of privatisation changing?
opposition to privatisation
Opposition to Privatisation
  • Despite successes, privatisation remains a controversial topic – why?
    • Fragmentation of beneficiaries
    • Impact of failures – used to attack principles rather than design of specific privatisations
  • Perhaps a need to examine the anti-privatisation literature more thoroughly
  • Could lead to more detailed consideration of conditions necessary for privatisation to succeed
slide11

Extensive state-owned banks in Africa

    • Typically inefficient, loss making, high NPLs, poor service, frequent recapitalisation, obliged to finance loss-making SOEs
    • Associated with highly regulated financial sectors
  • Banking privatisation part of broader financial reform process
    • Removal of direct controls
    • Market based monetary policy
    • Withdrawal of state from direct ownership
    • Encouragement of FDI in financial sector
banking privatisation results
Banking Privatisation - Results
  • Mixed experiences; best when:
    • Govts fully relinquish control and preferably fully divest shareholding
    • No post-privatisation restrictions
    • Privatisation to strategic investors rather than IPOs
    • Open bidding, including foreign investors
    • High level of competition in banking
    • High quality banking regulation
  • Can lead to major micro and macro gains, but may be conflict between political and economic objectives
impact of global crisis
Impact of Global Crisis?
  • Banking sector crisis in developed economies – major extension of state ownership
  • Negative attitudes towards banks
  • Is this the case in Africa?
  • Has privatisation been affected?
results of central bank survey
Results of Central Bank Survey
  • 3 questions addressed:
    • Is there a backlash against financial sector reform and liberalisation?
    • Is privatisation being affected?
    • Are govts considering a greater direct role in ownership of banks?
backlash against reform
Backlash against reform?
  • No evidence for backlash
  • In general, benefits of financial reform are evident and appreciated
  • Reform is entrenched and continuing – no suggestion of reversal
negative impact on privatisation
Negative impact on Privatisation?
  • No significant impact
  • Benefits of privatisation appreciated by public:
    • Improved efficiency, profitability, range of products and services
    • Privatised banks superior to old state-owned banks
    • Boosted by entry of foreign banks
  • Banks in Africa have avoided problems of toxic assets, major losses, bankruptcies – no calls/need for government intervention
  • Privatisation ongoing
greater state ownership role
Greater state ownership role?
  • No evidence of increased govt ownership role (except Nigeria!)
  • No real need for intervention or recapitalisation
  • Understanding that proper role for governments in financial sector is regulation and development
  • Focus is on reviewing/updating regulatory structures
future prospects
Future Prospects
  • Banking privatisation likely to continue, but
    • Most govt. owned commercial banks now privatised
    • Future privatisations may be more difficult (e.g. development banks)
    • Renewed focus on regulatory quality
conclusions
Conclusions
  • Review of banking privatisation in Africa confirms Dr Steytler’s more general conclusions
    • Can lead to significant micro and macroeconomic gains, but no guarantee of success
    • Privatisation must learn from earlier experiences
    • Should be tailored to local conditions
    • Must be accompanied by competition and appropriate regulation
    • Transparency should be enforced, with open and competitive bidding
ad