In referring to the process of reform of the State and the privatization of assets or management of state enterprises or property that characterized the policies of the 1990s, the report indicates, with regard to the former "almost no one today is satisfied with the reform…some because they think it undermined the nature of the State, others because they think that the reform did not change the concept of the State, which, in their view, made it difficult for markets to function properly". With regard to the privatization of state enterprises, the report recognizes that in many cases, above all when the process was clear and transparent, this has been beneficial to the population.
The report explains, however, that it is also true that "in many other cases the public did not see what the benefits of privatization were, since the services provided by the privatized firms were no better and prices even higher than before".
The ILO draws attention to the burden of foreign debt, a problem that has not been solved, to the point that, in some countries (the report cites Argentina as an example), the situation is getting to the point where it is
"unsustainable". Moreover, it warns of the pre-eminence of macroeconomic stability policies in which subjects such as the size of the public debt or controlling inflation are emphasized and structural issues such as efficiency and competitiveness in industry are neglected. "Frequently, little attention is paid to fiscal and social costs incurred when these policies cause an increase in unemployment and underemployment."
The report explains, however, that it is also true that "in many other cases the public did not see what the benefits of privatization were, since the services provided by the privatized firms were no better and prices even higher than before".
The ILO draws attention to the burden of foreign debt, a problem that has not been solved, to the point that, in some countries (the report cites Argentina as an example), the situation is getting to the point where it is
"unsustainable". Moreover, it warns of the pre-eminence of macroeconomic stability policies in which subjects such as the size of the public debt or controlling inflation are emphasized and structural issues such as efficiency and competitiveness in industry are neglected. "Frequently, little attention is paid to fiscal and social costs incurred when these policies cause an increase in unemployment and underemployment."