The Challenges of Privatisation: New Zealand's Experience with Forestry : Integrated Sustainable Multiple-use Forest Management under the Market System. Proceedings from IUFRO International Conference

Kopenhagen

1992

S. 119-160

34 Lit. Ang., 1 Anhg.

Bandaufführung

76574

The sale of the New Zealand Crown Forest assets is used as a case study to look at the issues and problems associated with the reduction in the involvement of the State in a commercial sector of the economy. Restructuring of State forestry was initially undertaken as a means of improving the return on public investments in forestry and of increasing public forestry's accountability. When asset sales became part of Government philosophy, the State's commercial forest assets were included among the assets to be sold. The sales process is outlined and Government's stated reasons for sale are examined with respect to what actually happened. Success of the sale is evaluated with respect to a number of possible goals. Several lessons emerge from this. It is concluded that the answer to whether or not the State "should" be involved in the forestry sector depends on the questioner's economic and political philosophies. From an economist's perspective there were many facets of change which could have been managed better. Whether restructuring and privatisation will produce a more efficient forestry sector remains to be seen.