Privatization in Argentina: The implications for corruption

Abstract

The article analyzes the privatization program carried out under the Carlos Menem administration in Argentina between 1989 and 1995. It shows how, on many occasions, the divestiture of government-owned assets was often carried out within a very weak legal framework which, in turn, opened windows of opportunities for corrupt behavior and collusive practices involving high ranking government officials and private corporations. Based on their findings, the authors stress the crucial role that transparency plays for effective results to take place after government selloffs. Indeed, the Argentine case shows that there is a strong correlation between the legal and regulatory problems that often arise in the aftermath of state divestitures and privatizations that have been carried out hastily and under a cloud of corruption allegations.