Privatization and Labour. What Happens to Workers When Governments Divest?
Countries the world over have launched ambitious privatization programs to improve the efficiency of state enterprises, free up resources for social services, and mobilize capital for expansion and modernization. A universal concern in this process is the effect privatization has on labor. Many observers fear that privatization will cause major job losses as new owners of privatized firms shed excess labor to improve efficiency and as divesting governments cut the workforce to prepare for privatization.
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