Privatization, Social Impact, and Social Safety Nets

27 Pages Posted: 13 Feb 2006

See all articles by Sanjeev Gupta

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department

Christian G. E. Schiller

affiliation not provided to SSRN

Henry Ma

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: May 1999

Abstract

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.

Keywords: Privatization, social safety nets, social welfare, state-owned enterprises, transition

JEL Classification: D60, G32, J31, L32, L33

Suggested Citation

Gupta, Sanjeev and Schiller, Christian G. E. and Ma, Henry, Privatization, Social Impact, and Social Safety Nets (May 1999). IMF Working Paper No. 99/68, Available at SSRN: https://ssrn.com/abstract=880595

Sanjeev Gupta (Contact Author)

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Christian G. E. Schiller

affiliation not provided to SSRN

Henry Ma

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

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