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Budget Issues: Privatization/Divestiture Practices in Other Nations

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Report Type Reports and Testimonies
Report Date Dec. 15, 1995
Report No. AIMD-96-23
Subject
Summary:

A variety of divestiture proposals are now being considered in the United States, including selling the Naval Petroleum Reserves, four Power Marketing Administrations, and the Helium Program. Because the U.S. government has limited experience with asset divestiture, GAO examined the experiences of other governments for lessons that might prove useful for the United States. For this study, GAO reviewed the divestiture experiences of the following five countries: Canada, France, Mexico, New Zealand, and the United Kingdom and major industries that have been fully or partially privatized such as agriculture, mining and construction, manufacturing, transportation and public utilities, finance, insurance, and real estate, and services. This report discusses (1) the privatization process, (2) the valuation and preparation of the assets for sale, and (3) the use and display of the sale proceeds for budgetary purposes.

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