Like other governmental economic activities, also privatization, such as in the sale of government-owned property, is particularly at the risk of cronyism. Privatizations in Russia, Latin America, and East Germany were accompanied by large-scale corruption during the sale of the state owned companies. Those with political connections unfairly gained large wealth, which has discredited privatization in these regions. While media have reported widely the grand corruption that accompanied the sales, studies have argued that in addition to increased operating efficiency, daily petty corruption is, or would be, larger without privatization, and that corruption is more prevalent in non-privatized sectors. Furthermore, there is evidence to suggest that extralegal and unofficial activities are more prevalent in countries that privatized less. COUNT 4
QSN1 Selling government property is highly at risk for what? ANS1 cronyism QSN2 What type of people got wealthy from the sale of state-owned companies? ANS2 Those with political connections QSN3 Where is corruption even more prevalent? ANS3 non-privatized sectors QSN4 Countries that what have more extralegal and unofficial things going on? ANS4 privatized less