Populist Privatization from the Viewpoint of the Fundamentalist School

Fundamentalism has offered great accomplishments for economics. Among those accomplishments are focus on the fundamentals of the market system, insight into internal relations in enterprises, the sequence of economic policies and the interaction between politics and economy. This article offers a critical evaluation of the populist privatization policies. Populist privatization transforms the fiscal system to a share-dominated system without the presence of the requisites for its efficient operation. This approach substitutes the public sector proprietorship with small and diverse proprietorship. For the same reason it aggravates the problem of monitoring the conduct of executives and the problem of corruption in those enterprises. In the meantime, to prioritize privatization over improvement of business and the work environment precipitates monopoly.