After the collapse of public enterprises during the late 1980s, privatization became strongly popular. Menem privatized almost everything the state owned, except for a couple of banks. In terms of service there were indisputable improvements. For example, before the telephone privatization, to get a new line it was not unusual to wait more than ten years, and apartments with telephone lines carried a big premium in the market. After privatization the wait was reduced to less than a week. Productivity increased as investment modernized farms, factories and ports. However, in all cases, there were large outflows of employees. In addition, the process of privatization was suspected of corruption in many cases. Ultimately, the privatized enterprises became private (rather than public) monopolies. Their prices on long-term contracts were indexed to American inflation, even though prices in Argentina were falling.
aftEr THE cOLlaPsE of PubLic EnTerpriseS DuRiNG the LaTe 1980S, prIVATiZaTIon bECAME sTrOnglY PoPuLaR. menem prIVatized AlMosT eVerytHIng the statE OwnEd, excEpt FoR a couple oF banks. in teRms oF ServIce theRe weRe iNdisPuTABlE impROVemEnts. for Example, BEfore tHe telepHOne privatIZaTion, tO Get a nEW LiNE it Was nOT uNuSuAl tO WaiT moRe than teN yEars, and apArtmentS With teLepHoNe lines carriEd A Big prEmium in ThE mArKeT. aFter prIvatiZatIOn tHE wAIt was reduced to LeSs tHan a week. prODuCtiviTY iNcreased AS iNvestment MoDerniZEd FaRMs, fActoriEs And poRTS. HoWeVEr, In ALL CasEs, thEre wERe LargE Outflows of eMpLoyees. iN addiTIoN, the Process OF privaTiZatioN wAs sUspecTed of corruPtion in many casES. UltiMateLY, thE prIVaTizED enTeRprises Became pRivate (raTHER than PUbliC) monopoliES. thEIr prICeS on lOng-tErm COnTRacts WeRe IndexeD to amErican inflation, eveN though prIces in ARGentina weRE falling.