Privatization and Globalization: A Critical Analysis with Implications for Public Management Education and Training

This article addresses the phenomenon of sweeping privatization as a ‘strategic instrument of globalization of capital’. Using a political economy analysis, it argues that, among other things, but most importantly, privatization should be understood in a direct correlation with the globalization of capital under late or corporate capitalism. It argues that privatization has been conceived by design, not by chance and haphazard events, and that its implementation has been pursued purposely, deliberately and vigorously around the world to accomplish the objectives of the globalization of capital. This has been happening despite evidence of extremely successful experiences with public enterprise management and government-owned enterprises worldwide. The article also treats the phenomenon of globalization as a globally transcending process towards a more rapid accumulation of surplus value of advance or corporate capitalism; hence a change within the continuity of the process of surplus accumulation by global capitalism. To understand this direct relationship between change and continuity and between privatization and globalization, we must first understand what globalization means, and then explain its corollary strategy of privatization worldwide. This article presents, first, a brief theoretical discussion of globalization and then a detailed argument of privatization as a strategic instrument of globalization of capital and, finally, some implications are provided for public management education and training.