Privatization, Social Impact, and Social Safety Nets
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Summary:
Privatization promotes economic efficiency and growth, thereby reinforcing macroeconomic adjustment. In the short run, however, it can lead to job losses and wage cuts for workers and higher prices for consumers. This paper discusses these impacts and the fiscal implications of privatization. It then reviews various methods of privatization and finds that public sales and auctions can have more negative effects on workers but maximize the government’s revenue gains. Policymakers’ options for mitigating the social impact of privatization are surveyed, and experiences under adjustment programs reviewed.
Series:
Working Paper No. 1999/068
Subject:
Economic sectors Employment Expenditure Labor Privatization Social assistance spending Unemployment Wages
English
Publication Date:
May 1, 1999
ISBN/ISSN:
9781451848977/1018-5941
Stock No:
WPIEA0681999
Pages:
27
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