Article Abstract:
Argentina decided to privatize Empresa Nacional de Telecommunicaciones (ENTel) in 1989 after realizing that it was the only way to improve the telecommunications infrastructure. Although privatization has indeed brought some advantages for Argentine consumers and telecommunications equipment makers, the regulatory framework which was emplaced after the privatization transaction will eventually impose a monopolistic or duopolistic structure.
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Article Abstract:
Prior to privatization, the Argentine Ministry of Defense owned many corporations which effectively dominated the nation's economy. However, these firms had long operated under financial difficulties and privatization was viewed as a way by which the economy could be improved. The Argentine experience showed that management needs to address possible concerns and critical issues a potential purchaser may raise.
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Article Abstract:
Most governments invariably choose to privatize state-owned entrprises which have little or no potential for creating value from future operations. The Argentine government took such a step when it decided to sell Sociedad Mixta Siderurgia Argentina (SOMISA), a steel company which was suffering financial difficulties. The lessons gleaned from the privatization of SOMISA are presented.
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