PRIVATIZATION
Privatization is the
process of transferring a public property to private by passing a law.
Advantages / Uses:
1)
Development would be faster(due to competition with the other
private parties)
2)
Innovative solutions (due to again competition with the other
private parties)
3)
Effective & time bound results
4)
Cost cuttings (to reduce the average cost of production)
5)
Improves quality in work (of each individuals)
6)
In turn more services to public are possible (goods service means
more sale)
7)
Increase the productivity (labour, machine)
8)
Significant Growth in the business & economy
9)
Controlled monitoring of public property gives public in turn good
services
10)
Less burden to government (Government partially involved in
monitoring of privatized firms)
11)
Income to government (Income to government)
Disadvantages / Possible Losses:
1)
Un-employment increases
2)
If the private party is inefficient, there is every possibility of
the business winding up.
3)
More restrictions on many things
4)
Purely commercial in nature and lacks ethical / human morals at
times.
5)
Exploitation of resources for more profit
6)
External cost increases