British Re - Nationalization and Regulation : the Government ' S Liability to Shareholders *

During the 1980s, Margaret Thatcher transformed the political and economic agenda of Great Britain. Emphasizing the traditional values of economic liberalism, Thatcher limited the role of the state in the economy and reduced the influence of trade unions. Privatizing many of its nationalized industries, the British Government sold off most of its shares in numerous industries, including British Telecom, Brit Gas, British Aerospace, and Cable & Wireless. The number of shareholders in Great Britain soared. Currently, Britain is second only to the United States as a shareholding democracy.I Privatization had several effects which were vital to the success of the Thatcher government. First, privatization raised over eight billion pounds for the British treasury by 1988.2 This money helped fund many of Thatcher's undertakings, including income tax reductions and the Falklands War.