Privatization as a Political Priority: The British Experience

This article challenges conventional approaches to Thatcher's privatization campaign in which privatization has been judged on the basis of its economic or public policy merits. The privatization programme of the Thatcher Government was driven by political objectives and thus it was more coherent than has been usually asserted. Politicians are motivated by maximizing their political benefits (power) rather than by the pursuit of the common good, that is optimal economic and public policies. Unlike some other papers who have considered the political aspects of the Conservative privatization programme, this paper introduces a distinction between what were the Conservatives' perceptions of the political consequences of privatization and the actual effect of this programme.