ABSTRACT
Privatization in Israel must be evaluated against the background of two major factors: the impact of the public sector on the economic system and the poor performance of the economy over the last decade. The drive for privatization is based on the thesis that these two are related: transforming the first is a necessary condition for solving the problems related to the second. In the structural transformation called for, divesting state-owned enterprises (SOEs) is considered central, and most recent debates about privatization circle around the issues related to the divestiture of SOEs.
