Privatization Putsch

Hardin, Herschel

Publisher:  Institute for Research on Public Policy, Halifax
Year Published:  1989   First Published:  1989
Pages:  224pp   ISBN:  0-88645-084-5
Library of Congress Number:  HD3850.H37   Dewey:  338.62
Resource Type:  Book
Cx Number:  CX4268



Abstract:  With government and the media agressively pushing the ideology of privatization as the cure to economic problems, Harshel Hardin's Privatization Putsch is a timely expose of the truths underlying the myths. Hardin shows that privatization is not a self-evident, rational econmic formula for economic well-being. According to Hardin, privatization is the expression of the ideology of a right wing, corporate agenda: business wants to gets its hands on public funds and politicians are more than willing to hand over publicly owned enterprises and public services to business friends, nearly always on terms that are immensely favourable to the corporations involved. Hardin identifies the "privatization bureaucracy" which stands to gain from privatization: investment groups, corporations, investment dealers, securities dealers, consulting companies, bankers, lawyers, accountants, financial magazines and stockbrokers. For example, in 1986 alone, British underwriters 'earned' $200 million in fess from privatization transactions, all directly from the taxpayers' pockets. Hardin points out the irony of accusations that public enterprise is bureaucratic. He demonstrates that public enterprises are commonly less bureaucratic than private enterprise, a fact that is commonly hidden from view by ideology. As Hardin notes, private enterprise in fact breeds a huge unproductive bureaucracy involved in paper entrepreneurship, mergers and takeovers, golden parachutes, financial lobbying,etc. It is just that it is never called a bureaucracy by the media, the politicians, or the business community.

Hardin strongly argues the merits and contributions of public ownership, showing that public enterprise has been crucial to the development of Canadian needs in developing enterprises when business would not take the risk.

The Privatization Putsch also argues that public enterprise could be an effective way of developing decentralization of economic pwoer, and democratic ownership and control of enterprises and economic decision-making.

[Abstract by Ulli Diemer]

Subject Headings

• Canadian Politics
• Capitalism
• Corporate Agenda
• Foreign Ownership
• Free Trade
• Privatization