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Mitigating the social impact of privatization and enterprise restructuring

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  • Fretwell, David H.

Abstract

This paper focuses on the role the of social programs in economic restructuring. Restructuring often results in significant downsizing of labor. When this occurs a negative social reaction can slow and/or stall restructuring. This is increasingly recognized by development agencies, governments, and enterprise managers and as a result social programs are increasingly becoming part of the design of enterprise restructuring programs. There are economic, social and political objectives for providing social support packages (SSPs) to workers displaced by restructuring and privatization of State Owned Enterprises (SOEs). Social support programs should include elements that combine to"pull"and entice excess labor to leave overstaffed enterprises, while at the same time helping"push"and assist displaced workers to quickly rejoin the labor market. These measures usually include both temporary income support and active labor programs. To be effective the measures must be carefully designed and targeted, and social monitoring of displaced workers should be an integral part of the design to ensure the services are reaching the most needy workers.

Suggested Citation

  • Fretwell, David H., 2004. "Mitigating the social impact of privatization and enterprise restructuring," Social Protection Discussion Papers and Notes 29143, The World Bank.
    • Handle: RePEc:wbk:hdnspu:29143
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    References listed on IDEAS

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    1. Wilson, Sandra & Fretwell, David H., 1999. "Public service employment : a review of programs in selected OECD countries and transition economies," Social Protection Discussion Papers and Notes 20129, The World Bank.
    2. Dar, Amit & Tzannatos, Zafiris, 1999. "Active labor market programs: a review of the evidence from evaluations," Social Protection Discussion Papers and Notes 20116, The World Bank.
    3. Fretwell, David H. & Benus, Jacob & O'Leary, Christopher J., 1999. "Evaluating the impact of active labor programs : results of cross country studies in Europe and Central Asia," Social Protection Discussion Papers and Notes 20131, The World Bank.
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    Cited by:

    1. World Bank, 2005. "Azerbaijan : Enterprise Restructuring and Labor Redeployment, Volume 1, Main Report," World Bank Publications - Reports 8751, The World Bank Group.
    2. World Bank, 2007. "Armenia - Labor Market Dynamics : Volume 2. Main Report," World Bank Publications - Reports 7846, The World Bank Group.
    3. Kuddo, Arvo, 2009. "Employment services and active labor market programs in Eastern European and Central Asian countries," Social Protection Discussion Papers and Notes 51253, The World Bank.

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