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F. The Privatization Audience |
While speaking to and attracting potential investors is obviously key, as noted above, the privatizing country should not forget that other audiences are also important. Consumers may face higher prices after a privatization, as subsidies are reduced, investments made and tariff reform, put off due to lack of political will, gets implemented. Workers and managers worry- about job security and possible job loss as the privatized entities become more efficient. It is important for the government to explain how these short-term hardships will be addressed and are worth the long-term gains. These issues can be addressed in negotiations. The participants agreed that countries must not only sell privatization to potential investors, but to their own populace as well.
Donors are also an important audience. The European Bank for Reconstruction and Development and the International Finance Corporation can purchase equity and lend to new private owners, which may encourage investors. Clearly, loan conditions can affect and shape privatization. Countries must work with donors and lenders to create a dialogue, communicate needs, and instill confidence in the donor or lender that contributions will be used effectively.
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Source: |
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Table
of contents |
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I. Power Sector Privatization |
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II. Privatization Process |
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Conclusion |
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