Critics, on the other hand, argue that privatization can lead to job losses, and, in some cases, higher costs for the public. This programme eventually broke the company up into six regional passenger rail companies and one freight rail company (‘JR companies’). Australian state governments have also used asset privatization to gain long-term balance sheet stability and offset debt. As noted earlier, one of the biggest concerns many have with privatization is that it could lead to job losses. Different research reports over the past 20 years have shown that business restructuring exercises after privatization did initially lead to job losses.

Source: Mint April 21, 2021 18:00 UTC