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If Milei moves forward with its privatization plan, the expected consequences, according to the PTS and La Izquierda Diario, could be similar to those experienced during the privatizations of the 1990s in Argentina. Here I detail some of the main anticipated consequences:
1. Increase in Rates and Worsening of Service: Privatizations often lead to an increase in tariffs for basic services, such as energy and transportation, while service quality may deteriorate. This has already been observed with tariff increases in companies such as Edenor and Edesur, which have reported significant profits while users face higher rates.
2. Unemployment and Job Insecurity: Privatizations have historically resulted in mass layoffs. In the 1990s, it is estimated that around 500,000 workers lost their jobs due to privatization. This could be repeated if more sectors are privatized [1].
3. Enrichment of Entrepreneurs and Corruption: Privatizations usually benefit a small group of businessmen who acquire state-owned companies at low prices, often in corrupt processes. This leads to a disproportionate enrichment of these sectors at the expense of the State and the population.
4. Increase in External Debt and Foreign Control: The external debt could increase, and control of the country’s main companies could pass into foreign hands, increasing the interference of international capital in the national economy.
5. Fragmentation and Abandonment of Services: In the case of railways, for example, privatization has led to a fragmentation of the network and the abandonment of services that could have a positive economic and social impact, but that are not profitable for large employers.
6. Deepening of Poverty and Inequality: The neoliberal model promoted by Milei, based on privatization and adjustments, could increase poverty and inequality, as already observed with the increase in unemployment and job insecurity.
In short, privatizations under the Milei government could lead to a deterioration in public services, an increase in poverty and inequality, and greater foreign control over the Argentine economy, replicating the negative effects of the privatizations of the 1990s. .
Cross-question: And what is the current conflict in Intercargo?
A significant conflict has broken out at Intercargo, a state-owned company that provides ramp services at Argentine airports. It all started with the unjustified dismissal of a worker, which led Intercargo and Aerolíneas Argentinas employees to hold permanent assemblies in protest. These actions caused ramp and loading work to not be carried out at the Aeroparque.
The situation escalated when the Secretary of Transportation announced that, in coordination with Patricia Bullrich, the Airport Security Police (PSA) would intervene to assist the passengers, which was perceived as an attempt to break the measure of force and a threat to militarize the tracks and ramps. Additionally, the government fired 15 Intercargo workers following the protest measures, and filed a court complaint accusing the workers of serious crimes such as unlawful deprivation of liberty and extortion.
This conflict is framed in a broader context of job insecurity and privatization plans. Intercargo generates million-dollar income, but its workers receive salaries that do not cover the basic basket. The government of Javier Milei seeks to privatize the company, which has been criticized by the aeronautical unions, which demand the reinstatement of those laid off and labor improvements.
The government’s response, led by Bullrich, has been described as an attack on the right to strike, and the solidarity of union organizations has been urged to confront this attack and defend labor rights.
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Source: www.laizquierdadiario.com
