Privatization by Capitalization : The Case of Bolivia - A Popular Participation Recipe for Cash-Starved SOEs

[摘要] While campaigning for the 1993presidential election, Gonzalo Sanchez de Lozada proposedthe unique Bolivian model of capitalization -- "Plan deTodos" (Plan for everyone)--for six large stateenterprises in key sectors. The enterprises would be offeredfor sale by international tender. The successful bidderwould pay the agreed price not to the government, but intothe company itself. The cash would be used for investment inthe sector. Initially the investor and the government wouldhold equal, 50 percent stakes in the new company. Thegovernment would immediately give its share in equal partsto all adult Bolivians by endowing "pensionaccounts" set up for each adult citizen. A 50 percentstake in a company is usually enough to ensure managementcontrol. However, to avoid any uncertainty and the risk of anegative impact on the selling price, the capitalization lawproposes that a management contract be given to thestrategic investor for a fixed period of time. After thattime, the investors would be able to buy shares in openmarkets to increase the shareholding beyond 50 percent.Sanchez de Lozada won the election in July 1993. With thehelp of World Bank advisors, he has been working to makethis capitalization concept a reality. However, it has runinto many of the thorny issues associated with traditionalprivatization schemes. This Note describes the keycapitalization issues during the process.

[发布机构] World Bank, Washington, DC

[学科分类] 社会科学、人文和艺术（综合）

[关键词] DENATIONALIZATION;GOVERNMENT OWNERSHIP;TENDERS;STOCKS;PENSION FUNDS