Strategic Divestment in the Public Sector : Patterns from France and Great Britain

Divestment is a strategic decision for firms in the private sector. It is a decision that is both difficult and unavoidable. In the 1980s', most governments in the world have been faced with increasing pressure to improve effectiveness and efficiency, and to reduce at the same time taxes and deficits. Divestment appeared then to be a key strategic alternative, leading to what is now known as the privatization movement. Britain and France have undertaken massive public sector divestments in the 1980s'. They have been emulated all over the world. Their experiences have generally inspired many other countries.With similar objectives, the French and the British have had different approaches to privatization. In this paper, we first describe the two experiences, emphasizing four aspects : the context of the privatizations, the macro-process, the micro-process and the results.Then the two experiences are compared and contrasted to lead to some implications for both policy-making and managing divestment.

KOENIG, C., HAFSI, T. and JORGENSEN, J.J. (1992). Strategic Divestment in the Public Sector : Patterns from France and Great Britain. ESSEC Business School.