Letter Supporting Privatization Of Postal System (Pros and Cons of Privatization)

Essay by hoshravHigh School, 10th grade June 2004

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Savoy Court

Oxford Street


Privatization Minister

10 Downing Street



October 8, 2001

Dear Sir or Madam:

Subject: Privatization of Postal System

I would like to pen down my views about the privatization of the postal services.

Privatization is selling off the government owned businesses to new owners in the private sector. In the days of Globalization and Free Enterprise it is no more "The governments business to be in business". The government should concentrate on creating an infrastructure and leave the business to the entrepreneurs.

Privatization will result in the following:

The network of post offices can be made use of for other business/service activities

The money that the government gets by selling off the service can be made use of for other budgetary requirements.

The profit motive will encourage to being more efficient and customer service oriented.

New investments will be made in the business and in Research and Development.

Competition will bring the prices down ultimately benefiting the consumer.

Decisions will be based on business logic rather than on political considerations.

More incentives for labourers.

I must also point out that privatization will not be free from pains

Initially privatization will result in unemployment.

A monopolistic situation may arise.

Now only the owners will benefit much.

If the business turns out to be unprofitable it may be shut down.

The society in general may not benefit, as owners are interested in maximizing the profits.

Considering the above points, the advantages outweigh the disadvantages. The business success of parallel postal services organizations such as Fed Ex and DHL are known to the world. I sincerely urge the government to take immediate action.

Yours faithfully,

Hoshrav Patel