Author Affiliation, Ana.
Department of Management Studies
The impact of failed privatisation on a developing country: A case study of the Sugar Company of Jamaica
Date of Publication
Sugar plays an important role in Jamaica's socio-political economy. For this reason thers was a reluctance on the part of government to divest the industry. In 1993, however, the Jamaican government unexpectedly took the decision to privatize the Sugar Company of Jamaica (SCJ). The paper argues that the decision to divest was influenced partly by the indebtedness of the estates and partly by the inability of government to provide the level of funding needed to recapitalize the company. Partial privatization was used as a means of accessing private sector resources to capitalize the estates. However, after four years of private ownership the SCJ reverted to public ownership. Argues that the failure of sugar privatization is linked primarily to the politics of sugar and the failure to fully privatize the industry.....