Efficiency or Insufficiency? the Privatization of the Chunghwa Telecom Company in Taiwan

Abstract

Privatization, a policy tool of New Public Management, has been used by many countries since the early 1980s. In view of Taiwan`s achievements in economics and democratic politics since the early 1980s, we think it can serve as a significant model for other developing countries in the world. Several controversies involving privatization are discussed with respect to the case of Chunghwa Telecom Company, a critical example of privatization in Taiwan. To highlight the process of Chunghwa Telecom`s privatization, we conducted in-depth interviews. The major findings include: 1. privatization improves efficiency under some conditions; 2. privatization can facilitate organizational competitiveness, however the organizational atmosphere and culture should be considered; 3. lack of accountability during privatization leads to corruption; and 4. privatization tends to disregard the public interest if the government fails to recognize its changed function.[ABSTRACT FROM AUTHOR]