Abstract:
Debate regarding key factors determining the success or failure of policies of liberalization and
privatization, illustrates the need for a concise theoretical foundation to guide decision makers as to
how, when, and where to apply policies that change underlying economic structures. This paper outlines
such a framework, which is based on the perception of gradations in the process of development.
It also argues that the introduction or new ownership structures, market mechanisms, and financing
techniques are not necessarily solutions without providing for changes in economic, societal and
legal infrastructures.
