Ben Fine has written some books and articles arguing convincingly that the process of nationalization and privatization happens because capital needs to restructure industry and can't under private control (alternately because of the context of class conflict between labor and capital in private industries, because of coordination failures among capital, or class conflict between capitalists and landlords). Then when restructuring happens, the industry is put back into private hands (of course, the real process is a bit messier than this). Fine told me in an email that he has a new book coming out next year on African privatization, which I'm looking forward to.
> It seems to me that "privatization" is a logical/historical > implication of "nationalization" and the use of statal or parastatal > corporations in industrialization. At the early stages of capitalist > industrialization in "backward" countries, such as Germany, a lot of > the industrialization is done by or through state- or state-sponsored > companies (cf. Alexander Gershenkron). Alternatively, some flavors of > social democracy favored nationalization of the commanding heights -- > or of Nazi sympathizing companies. > > Then, when industrialization has been accomplished, when the > rank-and-file base of social democracy has faded, and/or when > post-World War II antagonisms have moderated, the political balance > shifts toward "privatization." The external pressure from the IMF and > other imperialist agencies helps here. > > The parallels between neoliberal privatization and that of the Nazis > is interesting. However, I don't think that it was economic necessity > that encouraged privatization as much as it was the spoils system, the > rewarding of loyal capitalists, cronies, etc. > >
