Evaluation of Privatization in Yemen : Reality and Challenges

Abstract

Privatization was triggered by political and economic reasons under the pretext of the public sector failure and incompetence, which caused public budget deficit. This research sheds light on the theoretical aspects of privatization in Yemen and its implementation showing its success and failure. The study proved the research hypothesis that privatization in Yemen is facing real technical and economic environmental challenges such as the lack of capital market, lack of transparency, small local market, financial and administrative corruption and the weak infrastructure. The researcher recommends providing technical and economic environment for privatization and putting a complete and integrated time table for it. He also recommends avoiding privatizing the governmental public companies or factories, which have social economic and strategic dimension