ABSTRACT

This chapter aims to shed light on the issue of public sector reform by examining the type of privatization reforms adopted at the national level. It examines public sector reforms adopted before and after 1991. The chapter describes and discusses the types of public sector reform strategies that India has adopted. In reforming public sector enterprises, there are several measures that countries can adopt ranging from disinvestment and denationalization to internal reform of public sector enterprises. The chapter analyzes the reasons why the policy choices were made by examining the role played by administrative and elected elites, the role played by interest groups and citizens, and other factors such as external pressures and internal economic considerations. It argues that reform strategies such as greenfield privatization and marketization have been pursued more aggressively than others. The chapter provides an analysis of internal economic and political factors.