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August 16, 1996 - Image 118

Resource type:
Text
Publication:
The Detroit Jewish News, 1996-08-16

Disclaimer: Computer generated plain text may have errors. Read more about this.

D • IVE A LITTLE SAVE A L • 11

'96 CAMRY ELITE EDITION

PRIVATE page 116

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**RAV4, 4 Runner and Landcruisers excluded. Dealer invoice may not reflect actual cost. Good thru 8124/96

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ployees were laid off when the La-
bor government sold it three years
ago, and another wave of firings
is in the offing now.
Yet Mr. Lyon said, "I consider
the Shekem privatization to have
been a success, if nothing else be-
cause we [the government] are no
longer responsible for the compa-
ny's losses." The goal of privatiza-
tion, he emphasized, is "to make
these companies more productive.
We do not want to see workers
laid off, but in cases where work-
ers are not productive, layoffs may
be necessary."
While privatization may seem
like a panacea to Reaganite econ7
omists, it has brought many un-
desirable results in other
countries. The sale of Buenos
Aires's water utility to an inter-
national concern turned the op-
eration profitable, and
dramatically increased the qual-
ity of service, but 4,000 of the util-
ity's 7,000 employees lost their
jobs.
In England, privatization of the
trains and the Essex water utili-
ty led to a drastic deterioration in
service, as the new private own-
ers kept the profits to themselves
or dealt them out to shareholders
instead of investing them in the
companies.
There are liabilities to privati-
zation which are peculiar to Israel.
The key method of selling off gov-
ernment-owned companies is by
offering their shares on the stock
market, and the Tel Aviv Stock
Exchange has been in the dol-
drums for two years.
And in such a small, insecure
country like Israel, vital industries
like the Israel Electric Corp.,
Bezek Telephone and Israel Mil-
itary Industries are instruments
of national survival more than o_f
profit.
"Before the Yom Kippur War,
all the foreign airlines refused to
land here. El Al was the only one
going in and out. So a company
like El Al can't just be sold off to
the highest bidder from any coun-
try. It's necessarily a lengthy, del-
icate process," said Professor
Barkai.
Privatization is more than just
a matter of economics. It goes to
the heart of social philosophy, and
becomes a natural battleground
for liberals and conservatives. Lib-
eral economics commentator Arye
Caspi of Ha'aretz wrote:
"Privatization has turned into
a symbol of America's victory over
the Soviet Union. It's not a coin-
cidence that Netanyahu, a man
addicted to the banal consensus-
es of the American media, made
it into one of his banners. The ide-
ology of the market turned many
politicians into hostages of priva-
tization. The media grades them
according to how many govern-
ment companies they've sold. The
result: the sale of government
companies are sometimes against
the public interest." ❑

,_/

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