Privatization and the abolishment of most trade barriers was also accomplished by the Menem government alone at first and then with the support of the IMF structural adjustment goals. The government eradicated all of its regulating agencies in agriculture and retail. The tariffs were slashed from 40% to 9% in all cases except some industries like automobiles.

Most of the utilities such as water, electricity, gas, and telephone were privatized along with hotels and factories; together they accounted for the privatization of 90% of state held enterprises. Most of the enterprises were bought up by multinational companies from the U.S. and Europe, and the quality of many of the utilities increased. Privatization had many beneficial effects of health, income, and living standards.

Water privatization caused child mortality to fall by 26% in some of the poorest areas because the companies were able to sterilize and de-germ the water efficiently whereas under the government running water was not even available to some poor households. Because of the upturn in the economy and the huge capital inflows, living standards also increased dramatically.