The Privatization Experiment in Austria

Abstract

Austria is a country with a historically strong intervention of government. Specifically a large part of the manufacturing sector and electricity had been nationalised after World War II, combined with public ownership in telecommunication, transport and banking this created one of the largest public sectors in Europe. This article describes experiments of privatisation performed in the last decade ranging from the transfer of ownership, corporatisation, liberalisation to activities promoting efficiency and competition within the government. We specifically focus on the institutional framework needed for a successful privatisation, stressing the role of a professional privatisation agent, who monitors the privatisation process.