The same can be said of privatising companies to the current crop of cooperatives. Today these tend to be public sector enterprises, which have most of the shortcomings of other SLPEs. Of course, if cooperatives were converted into Mutually Aided Co-operative Societies and developed a proven track-record of commercial success, then they might well be equipped to rescue a former government-owned company.

But capital investment and productivity is not the entire story. The company’s private owners invested heavily in their own workforce. Salaries have increased by 150%, and workers are given training to keep upgrading their skills. Bonuses are commonplace and particularly hard-working and intelligent workers are sometimes given two promotions at once – there are no government-style waiting periods because the private sector bases its promotions and benefits on efficiency. Unions, management and workers collaborate closely, because they each know that more efficiency equals higher profits, allowing the company to pay more and provide better conditions for its workforce. Privatisation means cooperation, and everyone shares in the improvements that they make together.

It works in rich countries like Britain and Saudi Arabia. It works in poorer countries like Tanzania and Sri Lanka. It works in the ‘North’, in Poland and Germany, and in the ‘South’ in Chile, Zambia and Bangladesh. It works in so-called ‘socialist countries’ like China, and so-called ‘capitalist’ countries like Singapore. Location or relative wealth, or literacy, or infrastructure do not matter – privatization works everywhere.

Sometimes experts argue over the best way to privatize, but virtually all of them agree that privatization works, and is an economic necessity for most countries.

Privatisation :

* Stops loss-making SLPEs from adding to government debt;

* Depoliticises SLPEs, remove governmental pressures for over-manning and the sub-optimal use of resources;

* Gives new owners a strong incentive to turn around failing SLPEs into successful businesses;

* Gives new businesses access to investment capital that government cannot provide;

* Raises more money for government through taxing former SLPEs;

* Expands an enterprise and an industry, in the long run creating more jobs and generating wealth for the country.

It can be accomplished by sale or lease. It can be accomplished by the government selling 100% of an enterprise, or selling 51%, or even by selling a minority stake – so long as the private sector is given full managerial control. Without transferring control to the private sector, the government can rise money by selling a smaller share, but that is not privatisation as such.