Global privatisation proceeds increased dramatically in 1997 to reach US$153.4 billion, which compared to the 1996 figure of US$98.4 billion, representing a 55 per cent increase. OECD economies still account for the majority of the proceeds or 64 per cent of the total. Privatisation transactions in the OECD area raised US$98.5 billion in 1997 or some 40 per cent more than in 1996, which was itself a record breaking year. An even more robust trend has been developing in non-OECD economies; the volume of privatisation proceeds doubled in 1997 to reach US$55 billion, compared to US$27.9 during the previous year (see Table 1). Data from the past year confirms the predominant role of public offerings as the preferred privatisation method in OECD economies.

In contrast, most non-OECD countries, for a second consecutive year, have raised most of their funds from privatisation through trade sales to strategic investors. The participation of domestic investors in OECD privatisation programmes continued to grow, whereas the role of foreign investors has remained significant, though relatively less important. In the OECD area, the changing attitude of the population at large towards equity investments and the emerging “shareholder” culture have led to an increasing role of retail investors in OECD privatisation-related public offerings. Overall, the distribution of shares at primary offerings remains roughly balanced between retail and institutional investors, while the latter are likely to be much more important in secondary offerings.