Privatization, Social Impact, and Social Safety Nets

Author/Editor:

Sanjeev Gupta ; Henry Ma ; Christian Schiller

Publication Date:

May 1, 1999

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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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