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In Asia region, privatization is used not only as a response to government Failure but also a positive policy tool to assist industrialization. In the latter of 1970, many countries had transferred the public enterprises with poor performance to partially owned by private sectors. This privatization has become a trade on the global economic world in either developed countries or developing countries. The reasons for privatization are summarized as followed: lack of competition in public enterprises, productive inefficiency, and bad operating performance. Therefore, most of government believe that the privatization has ability to change the conventional enterprises'' motive and so to increase the productive efficiency. Despite a decade of privatization in the developing world, the vast majority of state-owned enterprise (SOE) assets continue to be in government hands. But it underestimates the role of institutional and economic constraints. If speedy privatization results in poorly conceived schemes, the cure can be worse than the illness. That divestiture will take bureaucrats out of business, when in fact many of the industries in which SOEs operate require regulation after privatization. Successful privatization however, requires sound management policies on the part of newly privatized industries. In industrialized countries, privatization has been primarily targeted toward improving the competitiveness of domestic industries and generating revenue from the sales of state assets. Competition and management reforms are more important than privatization in promoting economic efficiency. The first privatization program of the postwar era was undertaken in 1961 in Germany. Two decades later in 1974, Chile launched a systematic privatization program. But, privatization become an integral part of macroeconomic stability programs only after its success in the United Kingdom (UK) .
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