Mitigating the social impact of privatization and enterprise restructuring

David H. Fretwell

No 29143, Social Protection Discussion Papers and Notes from The World Bank

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.

Keywords: Municipal Financial Management; Banks&Banking Reform; Environmental Economics&Policies; Health Monitoring&Evaluation; Public Sector Economics (search for similar items in EconPapers)
Date: 2004-03-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www-wds.worldbank.org/servlet/WDSContentSer ... ndered/PDF/29143.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:hdnspu:29143

Access Statistics for this paper

More papers in Social Protection Discussion Papers and Notes from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Aaron F Buchsbaum ().