19
marginalizing the unskilled respectively. (4) Privatizations are also associated with
increasingly centralized governments and technocratism14, which might deter the
institution of a free public space. (5) Privatizations can realign electoral preferences by
promoting popular capitalism, including labor capitalism. (6) Privatizations can provide
the means to forge a culture of entrepreneurship, while at the same time producing apathy
among those who are unemployed. (7) Privatizations change the organization and
participation patterns of labor unions as well as workers’ attitudes towards
democratization. Labor unions are more fragmented on the issue of privatizations as
workers can become more or less enthusiastic about the premises of democracy as a
political regime.
1.3. Definitions of Privatizations: A Theoretical Perspective
There are myriads definitions of privatizations. They range from a simple transfer
of assets from the public to the private sector to liberalization and deregulation. State may
keep all its equity and delegate management of the enterprise to the private sector or it
can sell all or a portion of its assets. Deregulation, on the other hand, refers to the
simplification of customs and of licensing requirements, decrease in tariffs and other non-
tariff barriers. Liberalization, in turn, is the removal of restrictions in entering a particular
market. Liberalization breaks up monopolies and increases competition in the
marketplace. No matter which definition is chosen, privatizations entail a profound
transformation of the role of state and the balance between the public and the private
spheres.
14
Technocratism refers to the elitist rule by a small group of experts in a specific area, such as economics
or finances, with no or less need for deliberative processes involving the people or their representatives due
to the peculiarity and urgency of circumstances.
Convention