Of course, there is also justification for policies which encourage savings for retirement because of their positive social and economic benefits since these arrangements reduce burdens imposed on the welfare system for wage earners and independent workers during the same period. The proposed steps are intended to create long-term rationalization of investments by creating uniformity of conditions for various retirement age savings plans. In 1998, the quickened privatization process seen in 1997 will continue. Within this framework, privatization will include the sale of government owned companies and its controlling interest in the banks. Each government office dealing with the issues will carry out, jointly with the companies, all of the required operations to prepare the government owned companies for privatization.
Privatization is defined as the transference of properties from the public to the private sector.
The meaning of privatization is the cutting back of the government's role and level of its direct involvement in the economy and increasing the private sector's role through control and ownership of properties. Management of business concerns by the private sector with an emphasis on economic worth and efficiency which will increase the economy's efficiency. Privatization will raise the amount of resources available for the country's use. The sale of government owned concerns on the local capital markets will cause the capital markets to take off, deepening and widening its tradability and liquidity, increasing the number of strong firms trading in it. It will also entice institutional investors.