Network industries are often organized as vertically integrated public monopolies. Recent trends indicate the participation of the private sector. Developing and transition economies need to establish adequate regulatory policies and institutions to provide incentives for private sector participation and to protect public interests. New regulatory policies entail the creation of market competition in such industries or alternatively the creation of competition for the market. Natural monopoly sector privatization is a relatively new and still-evolving field, and it would be premature to venture definitive conclusions as to the "best practice" privatization and regulation models for natural monopolies. Nevertheless, we will offer some recommendations concerning natural monopoly privatization and regulation.

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Includes bibliographical references.