Ghobrial 16
that the government is using, is one of the reasons behind the existence of inequality, systems like the free market. The free market is a system that encourages the individual efforts to have a good placement in the market. Having a free market that is open for individual to be in, is the best way to have competition and always have upgraded products or services. BecauseIf the government was the only one in the market then there will be no enhancing in any aspect. Privatization is also a way that the government uses to encourage compotation. The definition of Privatization is the process of transforming an ownership of a business from the public sector to the private one. The privatization in Egypt has a bad reputation because of the corruption that excited in some companies. However, “privatization in Egypt- Quarterly Review April- June 2002” has a say about the effects of the privatization on Egypt. Concerning the fiscal, the privatization has led to a positive impact on the GOE finance, improved PE performance and increase in the tax payments. “On the fiscal side, the programhas had major impact on reducing the burden on Government’s fiscal resources, by not only cutting future losses of the PEs, but also bringing in revenues from the sales.” (PCSU) The problem is that privatization is always related in the mind of Egyptians to the huge numbers of workers who were dismissed from their jobs because their company transferred to the private sector. Yet, the report is claiming that the labor force wasn’t affected in that ugly image we see or think we see. Many of the privatized firms didn’t have any difference in the employment levels before or after the privatization. On the contrary, there are some new jobs opportunities appeared. “Despite the fact that doing away with excess labor is a necessity in order to improve the efficiency of operations according to market principles, privatization is not necessarily tied to a reduction in workforce levels. To the contrary, examples of some Law 203 companies privatized to anchor investors suggest that employment has increased since