Why Privatization doesn't work

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Ben Cohen
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By Ben Cohen

An interesting piece in the Guardian on New Zealand's willingness to accept that privatization has been a complete disaster. If they can, why can't Britain and the U.S, where privatization has brought about massive economic turmoil, poverty, and slow economic growth? By Seumas Milne:

New Zealand has long had a record of being ahead of the political
game. It was the first country in the world to accept women's right to
vote, in 1893. In the 1930s, it emerged as a pioneer of the modern
welfare state. Fifty years later, in the 1980s, it was the first state
to declare itself nuclear-free. Less creditably, during the same
decade, New Zealand became host to the first social democratic
government to embrace a free-market programme of wholesale
privatisation, liberalisation and deregulation.

Named after New
Zealand Labour's then finance minister, "Rogernomics" was all the rage
on the global new right for a time - and laid the ground for neoliberal
social democratic governments like Tony Blair's - until it finally
imploded amidst a litany of social and economic failures: stagnation,
unemployment, bankruptcies, crime and rampant inequality. Two decades
on, another New Zealand government, this time a more progressive Labour
coalition headed by Helen Clark, is again at the forefront of political
change - leading the revival of public ownership. More....