Privatization in Latin America

Privatization
in Latin America
MYTHS AND REALITY
Edited by
Alberto Chong
Florencio López-de-Silanes
INTER-AMERICAN
DEVELOPMENT BANK STANFORD UNIVERSITY PRESSPrivatization
in Latin AmericaPrivatization
in Latin America
MYTHS AND REALITY
Edited by
Alberto Chong
Florencio López-de-Silanes
A COPUBLICATION OF STANFORD ECONOMICS AND FINANCE,
AN IMPRINT OF STANFORD UNIVERSITY PRESS, AND THE WORLD BANK© 2005 The International Bank for Reconstruction and Development / The World Bank
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Library of Congress Cataloging-in-Publication Data
Privatization in Latin America : myths and reality / Alberto Chong, Florencio López-
de-Silanes [editors].
p. cm.—(Latin American development forum)
Includes bibliographical references and index.
ISBN 0-8213-5882-0
1. Privatization—Latin America. I. Chong, Alberto. II. López-de-Silanes,
Florencio. III. Latin American development forum.
HD4010.5.P754 2005
338.98’05—dc22
2004062831Latin American
Development Forum Series
This series was created in 2003 to promote debate, disseminate informa-
tion and analysis, and convey the excitement and complexity of the most
topical issues in economic and social development in Latin America and
the Caribbean. It is sponsored by the Inter-American Development Bank,
the United Nations Economic Commission for Latin America and the
Caribbean, and the World Bank. The manuscripts chosen for publication
represent the highest quality in each institution’s research and activity out-
put and have been selected for their relevance to the academic community,
policymakers, researchers, and interested readers.
Advisory Committee Members
Inés Bustillo, Director, Washington Office, Economic Commission for
Latin America and the Caribbean, United Nations
Guillermo Calvo, Chief Economist, Inter-American Development Bank
José Luis Guasch, Regional Adviser, Latin America and the Caribbean
Region, World Bank
Stephen Haber, A. A. and Jeanne Welch Milligan Professor, Department
of Political Science, Stanford University; Peter and Helen Bing Senior
Fellow, the Hoover Institution
Eduardo Lora, Principal Adviser, Research Department, Inter-American
Development Bank
José Luis Machinea, Executive Secretary, Economic Commission for Latin
America and the Caribbean, United Nations
Guillermo E. Perry, Chief Economist, Latin America and the Caribbean
Region, World Bank
Luis Servén, Lead Economist, Latin America and the Caribbean Region,
World BankAbout the Contributors
Francisco Anuatti-Neto is a professor in the Department of Economics at
the Universidade de São Paulo and FIPE (Fundação Instituto de Pesquisas
Econômicas), Brazil.
Milton Barossi-Filho is a professor in the Department of Economics at the
Universidade de São Paulo and FIPE (Fundação Instituto de Pesquisas
Econômicas), Brazil.
Katherina Capra is a researcher at the Unidad de Análisis de Políticas
Sociales y Económicas (UDAPE), La Paz, Bolivia.
Alberto Chong is a senior research economist in the Research Department
at the Inter-American Development Bank, Washington, D.C.
Ronald Fischer is a professor in the Department of Economics at the
Universidad de Chile, Santiago.
Sebastián Galiani is a professor in the Department of Economics at the
Universidad de San Andrés, Buenos Aires, Argentina.
Mauricio Garrón is a coordinator at the Organización Latinoamericana
de Energía, Quito, Ecuador.
Paul Gertler is a professor at the Haas School of Management, University
of California at Berkeley.
Antonio Gledson de Carvalho is a professor in the Department of Eco-
nomics at the Universidade de São Paulo and FIPE (Fundação Instituto de
Pesquisas Econômicas), Brazil.
Rodrigo Gutiérrez is a professor in the Department of Economics at the
Universidad de Chile, Santiago.
Florencio López-de-Silanes is a professor in the School of Management at
Yale University and an associate with the National Bureau of Economic
Research, Cambridge, Mass.
viiviii ABOUT THE CONTRIBUTORS
Roberto Macedo is a professor in the Department of Economics at the
Universidade de São Paulo and FIPE (Fundação Instituto de Pesquisas
Econômicas), Brazil.
Carlos Machicado is a researcher and PhD student in the Latin American
Program of the Universidad de Chile (Santiago)/Instituto Tecnológico
Autónomo de México (Distrito Federal)/Universidad Torcuato di Tella
(Buenos Aires, Argentina).
Carlos Pombo is a professor in the Department of Economics, Universidad
del Rosario, Bogotá, Colombia.
Manuel Ramírez is a professor in the Department of Economics at the
Universidad del Rosario, Bogotá, Colombia.
Ernesto Schargrodsky is a professor in the Business School at the Univer-
sidad Torcuato Di Tella, Buenos Aires, Argentina.
Pablo Serra is a professor in the Department of Economics at the Univer-
sidad de Chile, Santiago.
Federico Sturzenegger is dean of the Business School at the Universidad
Torcuato Di Tella, Buenos Aires, Argentina.
Máximo Torero is a senior researcher at Grupo de Análisis para el Desar-
rollo (GRADE), Lima, Peru, and International Food Policy Research In-
stitute, Washington, D.C.