Anti Aparthied moment in Africa and its effects on its economical structure.

Shell & POLAROID Effects The iconic struggle between the apartheid regime of South Africa and those who resisted it illustrates the complexity of some cases of civil resistance. Originally the use of civil resistance against apartheid was based on Gandhian ideas, which originated in South Africa in 1906 where Gandhi was a lawyer working for an Indian trading firm. Soon the African National Congress (ANC), founded in 1912, became the major force opposing the apartheid systems oppression of the 80% non-European population of the country. Using mostly legal tactics of protest during its first four decades, the ANC became more militant in the early 1950s and began using nonviolent direct action. White South Africans (Afrikaners) monopolized control over the state and the economy, including rich natural resources such as a third of the worlds known gold reserves. The Afrikaners developed an explicit theology and philosophy of white racial superiority and a legal and economic system enforced by a modern military and police force that deliberately excluded nonwhites from economic and political power. Nevertheless, the system became increasingly reliant upon nonwhite labor and isolated from international diplomacy and trade. Discouraged about the lack of results from their nonviolent campaign, Nelson Mandela and others called for an armed uprising, creating the Umkhonto We Sizwe (Spear of the Nation) that paralleled the nonviolent resistance. That, too, failed to tear down the apartheid system, and in the end a concerted grassroots nonviolent civil resistance movement in coalition with international support and sanctions forced the white government to negotiate. On 17 March 1992 two-thirds of South Africas white voters approved a negotiated end of the minority regime and the apartheid system. Nelson Mandela was elected as the President of the new South Africa in the first free elections by the entire population. The decades of struggle saw the ebb and flow of a wide variety of strategic actions within the anti-apartheid movement. American theologian Walter Wink (1987: 4) suggests the movement was probably the largest grassroots eruption of diverse nonviolent strategies in a single struggle in human history. Political History:

The timeline of this conflict begins with the founding of Cape Town in 1652 by the Dutch East India Company as a way station between the Netherlands and the East Indies. As it developed into a settlement, it was populated by the European ancestors of the Afrikaners, who eventually were the white minority comprising less than 20 percent of the population but who had nearly complete control of the nations government and economy. As resistance to the system increased, increasingly-restrictive legislation was passed; nonwhites were forcibly removed from their homes and relocated to segregated neighborhoods, and any hint of dissidence was repressed, from the banning of individuals and organizations from public life to the imposition of martial law. After decades of resistance to the explicitly-racist system, questions and even defections from the white power elite emerged in the 1980s as business leaders, aware of the need for a high-quality work force and in an effort to build up a small sector of the black population, began to despair of the failure of modest reforms and increased repression. Questions even began to emerge within the DutchReformed Church, which fashioned the apartheid theology that had legitimated the regime (see Kuperus 1999). In the end, it was the paradox of the regimes being both extraordinarily powerful and highly vulnerable that gave nonviolent resistance its power (Zunes 1999). Despite its powerful security forces, mineral wealth and industrial capacity, apartheid South Africa was dependent on its nonwhite labor force, southern African neighbors, and international ties with the industrial West. As these pillars withdrew their support the regime became unsustainable. Strategic Actions1: The ANC, created in 1912, was the major institutional vehicle of the resistance, at first emphasizing legal forms of protest and shifting to a more militant nonviolent direct action campaign in the early 1950s and then advocating violent resistance, along with its revival Pan Africanist Congress (PAC), founded in 1959. The violent resistance was limited to occasional bombings of government facilities and avoidance of civilian deaths. As Zunes (1999) correctly observes, the armed struggle may have harmed the movement, weakening the nonviolent campaigns (successfully linked to the nonviolent movement) and justifying the repression of all resistance efforts. Armed resistance against the continents most powerful military and a highly armed white citizenry fearing a racial war was never a serious threat.

In the 1970s, increased labor militancy and community support for opposition forces, along with the successful 1973 strikes in Durban, demonstrated the regimes vulnerability: brick and tile workers walked off the job one January morning, prompting first transport workers and then industrial and municipal labor to follow suit. By early February, 30,000 workers were on strike in Durban. The apartheid regime relied on black labor to keep the economy going and the strikes showed that widespread discontent could be mobilized to disrupt the work that kept the regime in power. Durbans labor activism in turn helped to inspire strikes elsewhere and then a student uprising that included a 1976 Soweto march that the police responded to by shooting a thirteen-year-old boy. In what became known as the Soweto Uprising, young people escalated by smashing windows and setting fire to schools and government buildings, to which the police upped the ante by shooting at students everywhere, leading to more than sixty fatalities (with two white men killed). In light of the apartheid regimes military superiority, by the early 1980s, antiapartheid forces were virtually united around a nonviolent resistance that could achieve maximum participation among nonwhites, divide the white community and move some toward acting on behalf of non-whites, and bring international pressures to bear on the government (Sharp 1980: 163). Drawing upon the Black Consciousness Movement led by dissident Steve Biko (who died due to brutal police treatment while in custody), a mass democratic movement emerged in the 1980s with an informal alliance between the ANC, the United Democratic Front (UDF, launched in 1983)2 and the Congress of South African Trade Unions (COSATU) calling for a multiracial democracy led by the ANC. One of the UDFs most prominent leaders was Archbishop Desmond Tutu, and it gained considerable support in the white community including from the South African Council of Churches . In 1985, nonviolent pressure continued to build, with 27 year-old Mkhuseli Jack organizing boycotts of white-owned businesses in the city of Port Elizabeth. The boycotters presented a series of demands: the integration of public facilities, the removal of troops from the black townships and an end to workplace discrimination (Ackerman and DuVall 2000). The boycotts were so powerful that the regime responded with the first declaration of a state of emergency in 23 years in an effort to stop the movements momentum, but with little effect. A three-day general strike in June 1988 mobilized more than three million workers and students, paralyzing industry, followed by an even larger general strike in August 1989.

In 1989, resisters also resurrected the 1950s Defiance of Unjust Laws Campaign3 that involved engaging in the civil disobedience of intolerable apartheid legislation and practices such as banning dissidents (which restricted their travel and activities and required them to report to authorities periodically as well as prevented the press from quoting them). It encouraged noncooperation with the tricameral legislative system, which was meant to co-opt dissidents and to repair the apartheid governments damaged reputation with the international community by giving non-whites token representation in the government.4 In addition to direct confrontation with the regime, resistors also created alternative community-based institutionssuch as cooperatives, community clinics, legal resource centers, and other organizationsthat increasingly marginalized and replaced official governmental institutions. Many black South Africans were hesitant to get politically active after the 1977 crackdown following the Soweto Uprising, but were attracted to the organization around community problems such as housing, escalating rents, sanitation, and other local issues (see Ackerman and DuVall 2000). The government responded with a ban on international funding of such organizations, but this did not have much impact on their activities. As the decade neared its end, the government had lost control in virtually every sphere of apartheid, with banned ANC flags flying, public facilities renamed, government officials confronted by school children, jailed activists holding hunger strikes, and clergy illegally marrying mixed-race couples (see Zunes 1999: 223). The resistance culminated in the 1989 Defiance Campaign with multiracial peace marches in Cape Town, Johannesburg, Durban, and throughout the country. Even business leaders and members of the white establishment such as the mayor of Cape Town joined the movement (Smuts and Westcott 1991). The struggle moved to the negotiating table, with anti-apartheid forces holding the upper hand but fashioning a democratic solution that also set the stage for a process of reconciliation. In total, the number of tactics used during the anti-apartheid struggle was enormous, and included the following: Protest and Persuasion

Mass demonstrations, marches;

Public declarations such as The Freedom Charter, adopted at the Congress of the People, Kliptown, on 26 June 1955; Funeral marches and orations as occasions for protesting apartheid and remembering victims of repression, especially when demonstrations were banned; Alternative press and advertising; Affidavits as a way of circumventing censorship (e.g., the South African Catholic Bishops Conference used affidavits for a book, Police Conduct During Township Protests in 1984); Memorials and anniversaries (e.g., church bells rung and vigils were held to commemorate 1960 Sharpeville protestors shot by police, and Soweto Day was declared to commemorate the 1976 uprising); Lighting candles every night during the Christmas season; Music was a major feature of the South African movementsinging, dancing, and chanting freedom slogans was common; UN General Assembly Resolutions; A register of Artists, Actors and Others who have performed in South Africa was created as part of an international cultural boycott; Symbolic clothing: Green, black and gold clothing symbolizing the banned ANC, and was worn even in court during trials; o Wearing ANC t-shirts; o A black armband worn in Parliament by Independent MP Jan van Eck mourning 40 years of National Party rule; o Naked protest parade of 200 men and women against an exhibition of electronic weaponry in 1982; Services of witness called by Archbishop Tutu inviting banned resisters to participate;
o

University students in 1987 used chairs to form a profane word large enough to be read by a circling police helicopter (a photograph appeared in the Weekly Mail); Flag burning, replacing the South African flag with the ANC flag; Graffiti: political slogans in public places to circumvent censorship; Humor: protestors wearing Stop the Call-up t-shirts to protest conscription were ordered to stop building a sand castle on the beach, leading to jokes about such activities as subversive Religious pilgrimages and worship services; Keeningpublic weeping and wailing by women outside the gates of parliament; Kneelingmarchers fell to their knees and begged the police to withdraw from their township; after negotiations, a woman leading the protest asked the crowd to turn back and the commanding officer withdrew his troops; Motorcades (e.g., buses, vans, and cars would drive into a city center during a boycott of white shops); Negotiations with political officials as pressure from international and domestic anti-apartheid forces reached its apex.

Noncooperation

Strikes and stay-aways organized by labor groups, especially the Congress of South African Trade Unions; Economic boycotts such as those organized by Mkhuseli Jack and others in Port Elizabeth; School boycotts; International sanctions, divestment, and boycotts;

Sports and cultural boycotts; Rent boycotts; Establishment of alternative institutions e.g., The National Education Crisis Committee, o Street committees and area committees, o Peoples courts, o Alternative parks named after movement heroes (e.g., Nelson Mandela Park, Steve Biko Park); Inter-racial bridge-building, social visits as social disobedience;
o

Civil disobedience: A South African Council of Churches resolution (July 1987) questioned the governments legitimacy and laws such as the Group Areas Act, the Education Acts and the Separate Amenities Act Use of an alternative birth registration system advocated by the South African Council of Churches defying the Population Registration Act;
o

The United States Chamber of Commerce proposed a civil disobedience program for businesses in South Africa; Hunger strikes by political prisoners (1989) resulting in the release of hundreds of detainees and increased caution in detention without trial; Refusal to serve in the South African military (leading to arrests of conscientious objectors); Informal Unbanning of themselves by resisters who had been banned by the regime (which restricted their travel and activities and required them to report to authorities periodically as well as prevented the press from quoting them); Clergy married couples forbidden to marry by the Prevention of Mixed Marriages Act

School officials allowed non-white or mixed-race students to enroll in their allwhite schools

Nonviolent Intervention

Archbishop Desmond Tutu led a protest march to a whites-only beach in the Western Cape (1989); Non-whites showed up at white hospitals and medical stations for medical treatment; The National Union of Mineworkers promoted a lunchtime sit-in at an all-white canteen, and had black African workers use whites-only changing rooms and toilets, buses, as part of the 1989 Defiance Campaign; Marching without permits When Run for Peace joggers were ordered to disperse, they did so by running away from the police but along the planned route (1985) Picnicking at the whites-only Boksburg Lake in defiance of apartheid regulations Ensuing Events: South Africa now has a democratic government and universal suffrage allowing all South African citizens to vote and hold political office. Nevertheless, a large proportion of its nonwhite population suffers grinding poverty and the hopelessness engendered by unmet high expectations, provoking widespread violence, crime, and civil unrest. Although the nonwhite population gained what former Tanzanian president Julius Nyerere called flag independence by gaining the vote and electing an ANCdominated government, the countrys economy, civil service, and military remain largely dominated by the white minority, forcing continued compromise and power struggles. The difficult transition was facilitated in part by the Truth and Reconciliation Commission headed by Archbishop Desmond Tutu, which attempted to repair the gap between the races by getting the ugly truth of the apartheid regime out into the open, enacting sentences on the worst offenders, and then seeking to find ways of reconciling the conflicting parties.

Role of Multinational Corporations in international politics The growth of Multinational Corporations is an ultra-modern method of neocolonialism (colonialism practiced in a new form) under which the U.S.A. and other Western European countries dominate politics and economies of the developing countries. Multi-national corporations are those corporations which originate from a common centre in the imperialist country but operate in different developing countries by merging in themselves certain firms of the, countries of operation also which are engaged in the same field. In this way, capital in the developing countries is also getting concentrated in those multinational corporations which have their centre of origin in the imperialist countries. It is on this account that certain analysts have observed that by this policy of widespread mergers within the country of, origin and across national frontiers, the "three hundred giant international \ corporations will dominate the economies of the principal non-communist. countries of the world by 1985." M.N. Report on Multinational Corporations. According to a report prepared by the U.N. Centre on Multinational Corporations, about 11,000 Multinationals have over 82,000 foreign subsidiaries and affiliates, of which 21,000 are located in developing countries. Of the affiliates in developing countries, 36 per cent are of parent U.S. companies, 27 percent ' from U.K., 7 per cent from France, 6 per cent from West Germany and Japan, and 4 per cent from the Netherlands. In eleven developing countries, of which six are in Latin America, there are more than 500; affiliates per country, while in more than 40 countries the number exceeds 100 per country. The developing countries in the western hemisphere have 47 per cent of the affiliates, with 28 per cent in South and East Asia, 21 per cent in Africa and 5 per cent in West Asia. Functioning of Multinationals Detrimental to Developing Countries. The functioning of these Multinational Corporations is detrimental to the interest of the Third World countries in a number of ways-

(1) Economies Exploitation: These multinational corporations are establishing monopolies by exploiting the resources of the developing countries. According to estimates of foreign experts, almost 40 per cent of the exports of the developing countries are made up of the products that are manufactured by these very firms. As noted in the widely known reports by the U.N. experts, namely, Multinational Corporations in World Development, the monopolies, not content with their dominant role in the export of products from the extracting countries of the Young States "are in general playing an increasingly important part in the export of manufactures from developing countries." Pursuing a policy of neo-colonialism, the multinational corporations infringe upon the sovereignty of the Third World countries, seek to gain control over their natural resources, impose unequal agreements upon them and impede the development of their independent national economies. These multinationals are in this way playing role in the developing countries that goes against their economic life and in the final analysis political independence of the country concerned. They dominate economic life of the developing countries through investment of huge capital and manufacture of important goods. They get raw materials from the developing country, where they operate at cheaper rates but sell the goods manufactured from that very raw-material at a very high rate. In this way, they exploit the developing countries under the excuse of developing different manufacturing units in the developing State itself. Their assets are growing at a fast rate. Taking the case of India, the total assets of subsidiaries of 243 multinational corporations that operated in India in 1967-stood at nearly Rs. 8,967"7 million. But, the total assets of subsidiaries of 171 multinational corporations operating in India in 1976 have grown to Rs- 16,267 million. In addition, it has been found that these multinational corporations spend major portion of their foreign exchange in importing raw materials from their parent concerns abroad at exceptionally high prices.

A study conducted by the Indian Institute of Public Administration revealed that the multi-national firms operating in India utilise almost Rs. 2,200 million of this country's foreign exchange reserves annually. Moreover, a major portion of the shares of these multi nationals is in the country of their origin. So, a large portion of the profit earned is remitted to the parent country. It leads to virtual draining of the resources of the developing countries. Moreover, instances have come to light where certain multi-nationals have shown their headquarters located in countries with liberal tax laws. "This enables them to evade taxes and remit funds to their parent concerns located elsewhere." In some of multinational corporations operating in India, they appoint their own Managing Directors at a "phenomenally high salary and other benefits" even in spite of the fact that they hold only 40 per cent of the share and the rest belonging to India. These multinationals pay fat salaries to their employees. And, they are paid out of the huge profits earned by them from the developing country itself. The rare rate of payment made to the labour helps in the development of what is called labour aristocracy. In simple words, the workers in these firms get very big salaries as compared to the workers in other indigenous firms. This naturally makes them aristocrat. The aristocratic labour go against the interests of the workers in general. They become elite among the labour. They become bourgeois (capitalist) among the labour. These workers in this way, help in spreading bourgeois mentality among other workers. In this way, they destroy labour consciousness and labour movement. Gunder Frank says, "There are two major consequences of multinational enterprises. Externally, these multinational enterprises have maintained and expanded the economic dependence of the underdeveloped nations. Internally they have led to the emergence of a new privileged group of people in these countries."

The Multinationals concerned with food have succeeded in weaning the developing countries away from grain production so that they could make profitable grain exports to them. On the land so released from food, the Multinationals themselves set up frontal vegetable growing business, earning big profits by exporting these items back to the West. Mexico, which once grow a variety of local food grains, has been converted into an. exporter of fruits and vegetables. The American Foods SK-re Company has set up a network for growing fruit and vegetables in Ghana, Egypt, Kenya, Zambia and Uganda. Multinationals have been exploiting the Third World countries in the field of pharmaceuticals. This is particularly the in case of India. Such Multinationals have been propagating the use of non-essential drugs and making large profits through over-pricing. An expert committee insists that of the 43,600 drugs registered and sold in India, three-fourths are non-essential. A survey conducted by the Indian Council of Medical Research points out that seven out of every ten purchases of antibiotics made in India are uncalled for. Recently, there was a controversy over the multinationals marking and selling nonessential baby foods in India. The products of multinationals are also mainly aimed at catering to the needs of a large section of the urban upper income-groups of society. Their products include consumer goods which form a major part of the budget of an upper class Indian family. In this way, their utility to the common man is also questioned. (2) Political Manipulations: Their activities do not remain confined to the economic sphere alone. They indulge in political activities and manipulations also. On the basis of the economic powers wielded by them, they try to influence the decision-making process of the country in which they operate.

These corporations have given rise to a big question mark whether political freedom will continue to exist when economic power is getting more and more concentrated in fewer and fewer hands. They lobby for a particular interest. They finance individual members of a political party and parties themselves in elections. These days, funds play a major role in elections. Any party that can manipulate funds, has better chances of victory. Naturally, they get political control of the developing countries also. In this context we can quote the Lockheed scandal in which the top Government and political officials in Western European countries and Japan were involved in bribery. On coming facts to light, the Japanese Prime Minister had to resign on account of the bribe he accepted for manipulating the purchases of aero planes. Dr. V. Gauri Shanker in his research thesis entitled "Taming the Giants: Transnational Corporation which he wrote under the sacrifices of Jawaharlal Nehru University, makes starting disclosures. He writes on the authority of LT.S. Investigating Agencies as to how Multinationals operating in India and Indonesia set apart secret funds for bribing officials and making political contributions. Sometimes, the Multinationals acting as fronts, for their governments, have interfered in the internal affairs of the hast countries and caused political destabilization. The role played by the American International Telephone and Telegraph in the ouster of Leftwing Aliened government in Chile is a notorious example. 3. Health Hazards: The Multinational Corporations activities pertain to such dangerous industries as chemicals, fertilizers, petroleum, metals and heavy engineering. In addition to the availability of raw materials, cheap labour and markets, the Multinationals find it easier to operate because of lax standards of safety and pollution control.

The Multinationals continue to push pesticides into the Third World in spite of persistent reports of poisoning. According to the World Health Organisation, over five lack people became victims of pesticide poisoning every year in countries like India, Pakistan,Sri Lanka, Indonesia and the Philippines. Oxfam, a British Charity Organisation asserts that in 1982 nearly ten thousand people died in Sri Lanka alone. In February, 1984 a pipeline fire killed nearly 100 persons at Cubatao in Brazil. In November, an inferno in a gas depot claimed about 400 lines out side the skirts of Mexico city. In December of the same year Bhopal witnessed the worst industrial disaster poisoning over 2,000 persons to death. Warren Anderson Chairman of the Union Carbide. Corporation on his return to U.S.A., tried to dissolve the parent company of blame by harping on an American team drawing the attention of the Indian management in June, 1982 to operational deficiencies at the Bhopal pesticide plant. It shows that neither the parent nor the Indian management of Union Carbide at Bhopal wanted to interrupt production and lose profits. Further, the Multinationals continue to make in India drugs which are banned in western countries. Anti-diarrheal drugs like form and mexa form have a base in which can damage the optic nerves. There are 50 other drugs worth base available in the Indian Market. Utility of Multinationals to Developing Countries. None can deny the role played by the Multinational Corporations in the economic exploitation and political manipulation of the developing countries where they resort to political bribery through offering illicit payments to Government and public officials. Still the Multinationals have a positive role to play in the development of new nations.

Mr. Hidayatullah, the Vice-President of India, has stressed the importance of Multinationals in a developing country on various reasons. And we cannot deny that they provide the technical know-how badly needed by the developing countries. India still needs know-how in many fields where foreign collaboration would be welcome. A lot of the technology for some key sectors of Indian industry has been provided by Multinationals. The technology for the chain of gas based fertilizer plants being planned on the basis of supplies from Bombay High is coming from Multinationals. Mr. Desai, the former Prime Minister of India, declared that he was not against Multinationals or giants, but was against those giants which wanted to make other dwarfs. Independence should be mutual and to the benefit of giver and the recipient. In addition to providing know-how, they provide investment capital also. They provide investment which would otherwise be impossible to raise within the country. For a poor country like India, it is beneficial to allow multinationals to operate so that they bring foreign investments subject, however, to the conditions laid down in the Foreign Exchange Regulation Act. India is preparing a list of industries that are banned and open to the Multinationals to operate. Thirdly, they offer competition. Without competition proper development is impossible. Referring to this aspect, the Vice-President of India remarked that Indian made cars do not compete with their foreign counterparts because there is no competition. The multinationals are not allowed to manufacture cars. This is what has led to complacency on the part of our indigenous car manufacturers that has resulted in poor quality. It is with the introduction of Maruti Car prepared in collaboration with Suzuki, a Multinational, that has compelled other car manufacturers in India to improve their models considerably.

Befooling the People. Our politicians befool the people on the question of multinationals by telling that they are against the national interests but at the same time allowing them to operate. P.K. Sanyal, the Managing Director of BASF, the Gertpan Multinational, said, "This is not a new experience, multinationals have got used to platform speeches by politicians. We also realise that many observations of politicians are meant for the gallery, because they also know what is good for the country. Unfortunately, once again virulent propaganda has been let loose, as if the multinationals are the cause of all evils in the country." Sanyal went on to say, "It is unfair to generalise about multinationals just as there are good and bad human beings, there are good and bad multinationals." They should not be clubbed together. Only those who carry on their business in a monopolistic way, "for example in minerals or scarce metals can abuse their power. But those in highly competitive fields, like chemicals, cannot afford to do so." Multinationals, managed by highly qualified professionals and backed by the latest in research and technology, do a lot of good and very little harm to a large country like India. Sanyal said, "There are many gains. I will mention only two. Multinationals spend huge amounts on research directed towards the overall improvement of life and economic conditions. India can be a beneficiary of the research only through association with multinationals; Secondly, it is well recognised that multinationals adopt modern and scientific methods which help stream-line costs and ensure the best professional management." India loses crops worth Rs. 5,000 crores every year due to weeds, plant diseases and insect pests. The chemicals against the damaging agents are produced by the multinationals. The life-saving drugs for the use of human-beings are also prepared by multinationals such as Pfizer, Hoechst, Glaxo, BDH etc. Conclusion:

It cannot be denied that operation of Multinationals has both the negative and positive points to offer. It is for a developing country like India to see that the benefits offered by them must be extracted while at the same time minimizing the chances of economic exploitation and political manipulations on their part. The lessons learnt in 1984 make it vital that the Multinationals should not be allowed to function except under a strict environmental controls and health and safety regulations. IMPACT OF PRIVATIZATION IN TELECOM SECTOR The concept of privatization is not new to the policy makers of this country. It may be traced as back as in 50s, when Pakistan Industrial Development Corporation (PIDC) was established in 1952 to boost up the industrial development in the country. This premier Corporation established over 50 industrial undertakings in the length and breadth of the country and after their successful operation and management, these units were transferred from the public to the private sector. The tide of nationalization, which swept the whole economy in the first half of 70s, was reversed in 1977. The privatization of State Owned Enterprises (SOE) became an important instrument of economic policy of the government in late 80s. However, it was in 1991 that privatizations process in Pakistan became effective. Privatization of SOEs is a multi-faceted, complicated as well as politically and socially sensitive process. A well-devised privatization plan of SOEs essentially takes care of all the stakeholders, which include labour, consumers, investors, government and the economy. It helps to promote capital, goods and labour markets in the country. The privatization process in Pakistan has passed through different phases and it has been very instrumental to redefine the relationship of private and public business with the government institutions. impact of privatization and competition in the telecommunications sector around the world. Full privatization, which gave private owners control rights, contributed substantially to improving the allocation of labor and capital, expanding service output and network penetration, and improving labor and total factor productivities. But partial privatization, which retained the states control rights, showed no significant impact. The increase in competitive pressure contributed substantially to growth in the sector by raising both factor inputs and total factor

productivity. We also found evidence of complementarity between privatization and competition in deepening network penetration and in restraining the rise of service pricing among privatized operators. Our results are robust to plausible alternative specifications.