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It doesn't. It just provides access to private investors to buy shares and acquire other benefits from the companies that are being sold.
For example, Telmex was the only provider of telephone services in Mexico. When it was sold to private investors in the late 80's, nothing really changed: the wages were the same, the service was the same, the tariffs were the same and due to it being a huge company, it was still a monopoly.
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