ABSTRACT
In order to evaluate the performance of a denationalized enterprise or understand what has contributed to the success or failure of privatization in Bangladesh, one needs much more than accounting analysis. The success of privatization depends on creating and sustaining an overall economic environment that fosters dynamic growth through increased private sector activity. Incentives for private sector investment have increased, and barriers to participation in all but a few fields have been removed. The private sector's concerns and problems have shifted from policy to implementation. Some of the public service obstructionism stems from distrust of or disdain for the private sector. The true test of whether privatization will benefit Bangladesh lies more in evaluating the accomplishments and potential of the private sector in general than the performance of a set of stumbling enterprises unloaded because they were losing money. The Bangladesh business community is strangely uneasy and unsure of itself under the more liberal regulatory environment.
