Privatisation: Advantages of privatisation!
Transfer of services, activities and operations from govt. to private enterprise.
ADVANTAGES OF PRIVATISATION
·Privtaely owned Firms are more cost efficient - because they need to make a profit.
·Privatisation places the risk in the hands of business or Private Enterprise.
·Govt. Businesses are subject to an enormous amount of red tape (Beauraucracy)
·Private enterprise is more responsive to customer complaints and innovation.
·Govt Ent. Have an advantage over private Ent. Because they can guarantee payment of bills and they don't pay tax.
·The Govt. should not be a player and an umpire.
·Privatisation provides a one off cash boost for Govt. This can be spent on Hospitals etc...
·Privatisation leads to lower prices and greater supply.
·Competition in privatization increases differentiation.
·Private sector uses less resources, therefore resources are free for other purposes.
·As a result of privatisation more tax income is generated for govt.
·Loss making activities no longer run by Govt. - No longer responsible.
·Private Sector managers are more efficient.
·Private sector is more flexible in relation to finance
·Govt. sector magangers are responsible to Govt. legislation.
·Private Ent. Can hire and fire by performance.
·Prvt. Organizations can use marketing advertising with Govt. Permission.
·Private Orgs can move into new markets.
Development Studies essays:
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The Australian Government intends to sell Medibank Private. Describe why Medibank Private was originally established and critically discuss the Government's reasons for privatising this organisation.
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Additional factors which might be considered when examining the impact of Foreign Direct Investment on economic growth. Using Brazil as a case study.
... took advantage of the opportunities presented by the privatisation of state companies and sought market access through the purchasing of existing assets. In the instance of the ...
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... yield of commodities such as rice and wheat, as these commodities have no advantages of price ... the WTO include agriculture, finance, and unemployment; the state-owned enterprises challenge which is encouraged to undergo privatisation; the education challenge which is a main factor that influences ...
... the sector: the state monopoly is abandoned and market power divided over several private suppliers; or in other words, free market competition is introduced. The subject of privatisation of electricity markets is an extremely interesting one because it has a significant ...
... certainly developed countries that are doing their best to take advantage of it. In fact culture will help industrialized countries to win ...
... this period Mohammad Zia ul-Haq was in power. After 1977 the government of Mohammad Zia ul-Haq (1977-88) began a policy of greater reliance on private enterprise to achieve economic goals, and successive governments, continued this policy throughout the ... greater reliance on private enterprise to achieve economic goals, and successive governments, continued this policy throughout the late 1980s and early 1990s. Soon after Zia came to power, the government instituted constitutional measures to assure private investors that nationalization would occur ...