The first privatisation policy in Latin America: selling state-owned enterprises in 1948-1950 Puerto Rico

摘要

In the 1940s, when the governor of Puerto Rico was still appointed by the U.S. president, a large state-owned enterprise (SOE) sector was established.Later, in 1948-1950, the island’s first elected government privatised theseSOEs. This paper documents both the creation of the SOE sector and itsprivatisation, and analyses the role played by ideology, political interests andeconomic concerns in the decision to privatise. Whereas ideological factorsmight have played a significant role in the building of the SOE sector, theprivatisation process was driven by economic factors. In the cement sector,the competing private firm was more efficient and the SOEs in other sectorswith no private competitors in the island showed permanent losses.