Privatisation slows down worldwide

Has the money lost heart, or is it the bureaucrats?

Via Richard Murphy comes this Financial Times piece (£), suggesting that privatisation may be declining globally:

The pace of privatisation around the world has slowed sharply, with an unprecedented number of asset sales delayed or cancelled amid volatile markets and political uncertainty.

Despite governments across the globe continuing to hoist for-sale signs over state-owned enterprises ranging from airports to electricity networks, the number of completed deals last year was less than half the 2010 figure, according to the Privatisation Barometer, a joint project between KPMG and Fondazione Eni Enrico Mattei, a Milan-based research institute.

The report (pdf) offers the explanation that last year was one of "global financial retrenchment", prompted by the Eurozone crisis and the fight in the US over the debt ceiling. It offers, as a "dramatic" example of the former:

The Spanish government['s] forced cancellation, literally days before execution, of what would have been 2011’s largest privatization — the October sale of 30% of the national lottery, Loterias y Apuerto del Estado, which would have raised over €7 billion ($9.7 billion) — and the near-coincident delayed (not yet renewed) sale of the Madrid and Barcelona airports that could have raised more than €5 billion ($6.9 billion).

The explanation leaves something to be lacking, however. If, as the report argues, the Eurozone crisis was one of sovereign debt, then it ought to have led to more, not fewer, privatisations, given that they are one of the most effective ways for a nation to raise in a short period of time the amount of cash necessary pay down debt.

Similarly, the big economic story of the last year has been the flight to safety, which has led to the reverse-sovereign-debt-crisis being experienced across much of the world, as well as little quirks like RORO. That too ought to lead to greater, not lesser, privatisation, since taking control of an established monopoly is a pretty safe investment. So long as a company doesn't completely misjudge how much it can make from a utility (looking your way, GNER), it's hard to fail when buying out the state (hard to fail, that is, from a financial point of view. Very easy to fail when it comes to actually providing services).

I think the best explanation is that privatisation is becoming uncool, not for economic reasons, but for political ones. States simply don't want to take the unpopular move of handing over control of their services to the private sector. Whether this is good or bad depends on the specific circumstances (as with Matt Yglesias, I think a well-thought-out mutualisation of the US Postal Service could do wonders, but the sale of Madrid and Barcelona airports risks creating the nation's own version of BAA), but Murphy thinks there is something to celebrate anyway:

Let’s hope that there might also be a realisation implicit in this that people now realise that it’s not just banks that can be too big to fail, but that much else that we depend upon is also too big to fail, and needs to be state run to ensure it survives as a result.

Barcelona airport, following a protest by cleaners. The airport was due to be privatised this year. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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This is the new front in the battle to control women’s bodies

By defining all of us as “pre-pregnant”, women are afforded all the blame – but none of the control.

For several weeks, YouTube has been reminding me to hurry up and have a baby. In a moment of guilt over all the newspapers I read online for free, I turned off my ad-blocking software and now I can’t play a simple death metal album without having to sit through 30 seconds of sensible women with long, soft hair trying to sell me pregnancy tests. I half expect one of them to tap her watch and remind me that I shouldn’t be wasting my best fertile years writing about socialism on the internet.

My partner, meanwhile, gets shown advertisements for useful software; my male housemate is offered tomato sauce, which forms 90 per cent of his diet. At first, I wondered if the gods of Google knew something I didn’t. But I suspect that the algorithm is less imaginative than I have been giving it credit for – indeed, I suspect that what Google thinks it knows about me is that I’m a woman in my late twenties, so, whatever my other interests might be, I ought to be getting myself knocked up some time soon.

The technology is new but the assumptions are ancient. Women are meant to make babies, regardless of the alternative plans we might have. In the 21st century, governments and world health authorities are similarly unimaginative about women’s lives and choices. The US Centres for Disease Control and Prevention (CDC) recently published guidelines suggesting that any woman who “could get pregnant” should refrain from drinking alcohol. The phrase implies that this includes any woman who menstruates and is not on the Pill – which is, in effect, everyone, as the Pill is not a foolproof method of contraception. So all females capable of conceiving should treat themselves and be treated by the health system as “pre-pregnant” – regardless of whether they plan to get pregnant any time soon, or whether they have sex with men in the first place. Boys will be boys, after all, so women ought to take precautions: think of it as rape insurance.

The medical evidence for moderate drinking as a clear threat to pregnancy is not solidly proven, but the CDC claims that it just wants to provide the best information for women “and their partners”. That’s a chilling little addition. Shouldn’t it be enough for women to decide whether they have that second gin? Are their partners supposed to exercise control over what they do and do not drink? How? By ordering them not to go to the pub? By confiscating their money and keeping tabs on where they go?

This is the logic of domestic abuse. With more than 18,000 women murdered by their intimate partners since 2003, domestic violence is a greater threat to life and health in the US than foetal alcohol poisoning – but that appears not to matter to the CDC.

Most people with a working uterus can get pregnant and some of them don’t self-define as women. But the advice being delivered at the highest levels is clearly aimed at women and that, in itself, tells us a great deal about the reasoning behind this sort of social control. It’s all about controlling women’s bodies before, during and after pregnancy. Almost every ideological facet of our societies is geared towards that end – from product placement and public health advice to explicit laws forcing women to carry pregnancies to term and jailing them if they fail to deliver the healthy babies the state requires of them.

Men’s sexual and reproductive health is never subject to this sort of policing. In South America, where the zika virus is suspected of having caused thousands of birth defects, women are being advised not to “get pregnant”. This is couched in language that gives women all of the blame and none of the control. Just like in the US, reproductive warnings are not aimed at men – even though Brazil, El Salvador and the US are extremely religious countries, so you would think that the number of miraculous virgin births would surely have been noticed.

Men are not being advised to avoid impregnating women, because the idea of a state placing restrictions on men’s sexual behaviour, however violent or reckless, is simply outside the framework of political possibility. It is supposed to be women’s responsibility to control whether they get pregnant – but in Brazil and El Salvador, which are among the countries where zika is most rampant, women often don’t get to make any serious choice in that most intimate of matters. Because of endemic rape and sexual violence, combined with some of the strictest abortion laws in the world, women are routinely forced to give birth against their will.

El Salvador is not the only country that locks up women for having miscarriages. The spread of regressive “personhood” laws across the United States has led to many women being threatened with jail for manslaughter when they miscarry – even as attacks on abortion rights make it harder than ever for American women to choose when and how they become pregnant, especially if they are poor.

Imagine that you have a friend in her early twenties whose partner gave her a helpful list of what she should and should not eat, drink and otherwise insert into various highly personal orifices, just in case she happened to get pregnant. Imagine that this partner backed his suggestions up with the threat of physical force. Imagine that he routinely reminded your friend that her potential to create life was more important than the life she was living, denied her access to medical care and threatened to lock her up if she miscarried. You would be telling your friend to get the hell out of that abusive relationship. You would be calling around the local shelters to find her an emergency refuge. But there is no refuge for a woman when the basic apparatus of power in her country is abusive. When society puts social control above women’s autonomy, there is nowhere for them to escape.

Laurie Penny is a contributing editor to the New Statesman. She is the author of five books, most recently Unspeakable Things.

This article first appeared in the 11 February 2016 issue of the New Statesman, The legacy of Europe's worst battle