The thesis attempts to provide a critical evaluation of the social consequences of privatization. It is mainly based upon a field study conducted in Eregli, an industrial town in Central Anatolia, and evaluates workers&rsquo / attitudes towards the effects of privatization on their lives. For that purpose, firstly, social development paradigm is highlighted since its current premise is the necessity of privatization / secondly, Turkish Experience of the State Economic Enterprises is taken into consideration / and lastly, providing a case study on the privatization of S&uuml / merbank Eregli Cotton Plant, social consequences of privatization are examined more closely. Thus, it will also be possible to point out concretely that privatization is a social phenomenon in addition to its economic side. The main conclusion of this thesis is that a large scale privatization without taking into consideration social returns damaged the welfare of communities in which it experienced.