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

Author: CHUNG-YUANG JAN and CHUN-YUAN WANG
Published in PAQ, Vol. 34 No. 1

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.

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