Essay on Advantages and Disadvantages of Privatisation 2

Words: 4553
Pages: 19
Open Document
ADVANTAGES AND DISADVANTAGES OF PRIVATISATION

Contents 1.0 INTRODUCTION 1 2.0 ADVANTAGES OF PUBLIC SECTOR PRIVATISATION 2 2.1 Improving Efficiencies 2 2.2 Reduction in Government Cost and Spending 3 2.3 Focusing on Core Competences 3 2.4 Streamlining Businesses to Allow Productive Job Creations 4 2.5 Obtaining Goal Congruences 4 2.6 Effective Utilization of Taxpayers’ Money 5 2.7 Generate Income Tax Revenue 5 2.8 Improving Government Financing 6 2.9 Reorganisation or Restructuring Government Systems and Performance Measures 7 3.0 DISADVANTAGES OF PUBLIC SECTOR PRIVATISATION 7 3.1 Possible Control of Foreign Entity on National Interests 7 3.2 Monopoly Risks 8 3.3 Management Incompetencies 8 3.4 …show more content…
Over the last several decades, in governments at all levels throughout the world, the public sector’s role has increasingly evolved from direct service provider to that of an indirect provider or broker of services; governments are relying far more on networks of public, private and nonprofit organizations to deliver services.
The states most successful in privatization created a permanent, centralized entity to manage and oversee the operation, from project analysis and vendor selection to contracting and procurement. For governments that forgo due diligence, choose ill-equipped contractors and fail to monitor progress, however, outsourcing deals can turn into costly disasters.

2.3 Focusing on Core Competences

Transforming public sector towards privatization would help ease government cashflow and financial burdens. Plus, government could focus on its other core competences such as healthcare, military forces and education spending which any of such issues contains substantial contributions towards well being of the people.
There are several reasons for this argument, including the undesirability of a large bureaucracy, the inefficiencies of centralised planning and the crowding-out of private investment. The implementation of privatisation could be undertaken in such a manner as to undermine the benefits that would otherwise
Show More

Related Documents: Essay on Advantages and Disadvantages of Privatisation 2

Nature of Business Essay

(shareholders) of the company. Sole Traders: Advantages simple not to costly no disputes with partner Disadvantages personal liability burden of management Perform wide variety of tasks Partnerships: Advantages low start-up costs shared responsibility and workload no taxes on profits Disadvantages personal limited liability disputes are a possibility difficulty finding loyal partner and divided authority Proprietary Companies: Private company 2-50 shareholders (PTY LTD) Small/medium…

Words 545 - Pages 3

Globalisation in Developing Countries Essay

tariffs and cutting government expenditure the state can enjoy high levels of economic growth. Supporters of neoliberal ideas are usually transnational corporations (benefiting from deregulation), wealthy investors (who are able to take advantage of privatisation with foreign direct investment), right wing political parties and academics from fields where social factors are often ignored. Neoliberal ideas were further developed by Milton Friedman and his academics at Chicago University. In 1973…

Words 3020 - Pages 13

Report: Corporation and Private Sector Essay example

Contents Page 3 - Introduction Page 4 - What is an organization? Page 5 - Business Organization 1 - A Sole trader Page 6 - Business Organization 2 - Partnership Page 8 - Business Organization 3 - Limited liability Partnership Page 9 - Public vs. Private Sector Page 11 - Conclusion References Introduction This report sets out to establish and explain exactly what an organization is. I will provide Molly Mark and Mary with an explanation of 3 different types of business organizations…

Words 2468 - Pages 10

Essay on The Comparative Advantage of Greece in the Era of Recession

The comparative advantage of Greece in the era of recession Lampros Gallos National and Kapodistrian University of Athens Athens, Greece lam.gal@hotmail.com Abstract The aim of this paper is to investigate the export behaviour of Greece and to identify its comparative advantage. Moreover, through the conclusions of the analysis, is investigated whether the export activity of the country coincides with its comparative advantage especially in the present circumstances, those of recession. Initially…

Words 4245 - Pages 17

Unemployment Essay

Unemployment Definition: Unemployment means that scarce human resources are not being used to produce goods and services to meet people's needs and wants. The unemployed are people able, available and willing to work at the going wage rate but cannot find a job despite an active search for work. Claimant Count: * The claimant count measure includes people who are eligible to claim the Job Seeker's Allowance. * The data is adjusted seasonally to take into account predictable seasonal…

Words 2771 - Pages 12

Economics Essay Notes

ECO ESSAYs 1. Globalisation 2. Trade Agreements 3. Free trade/protection 4. Balance of Payments 5. Exchange Rate 6. China 7. Growth 8. Unemployment 9. Inflation 10. Inequality 11. External stability 12. Environment 13. Fiscal Policy 14. Monetary Policy 15. Microeconomic Policy 16. Labour Market 1. Globalisation Analyse the impact of changes in the global economy (globalization) on Australia’s economic performance • Intro o Context – 30 years, increase in integration of economies…

Words 6401 - Pages 26

IB Notes Essay

your customers live in the country where your business operates Foreign market: consists of all the customers in a country other than your own 5 Ways a Business Could Be Considered International 1) Own retail/distribution outlet in diff country 2) Own manufacturing plant in a diff country 3) Export businesses to diff country 4) Import from businesses in diff country 5) Invest in businesses in another country When a business in Canada develops a relationship with another country they are…

Words 7221 - Pages 29

Essay on Poverty and Development Gap

gap * Impacts on minority groups * Impacts on Megacities * The positive and negative impacts of countries trying to close the gap on migration and the environment * Theoretical ways of reducing the development gap * The advantages and disadvantages of methods of closing the development gap Key Terms: Aid | Refers to gifts or repayable loans made by one country to another | Apartheid | Meaning segregation, used to describe a political and legal system used in South Africa to…

Words 4057 - Pages 17

The Evolution Of China's Mobile Telecommunications Industry

114 Int. J. Mobile Communications, Vol. 3, No. 2, 2005 The evolution of China’s mobile telecommunications industry: past, present and future Jiang Yu* Department of Engineering, University of Cambridge, CB2 1RX, UK Institute of Policy and Management, Chinese Academy of Science (CAS), Beijing, 100080, China E-mail: jy250@cam.ac.uk *Corresponding author Kim Hua Tan Centre for Strategy and Performance, University of Cambridge, CB2 1RX, UK E-mail: kht23@cam.ac.uk Abstract: This paper…

Words 5379 - Pages 22

Essay about Politics: European Union and Company

Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. Advantages of the EU: * High reduction of war probability, common foreign policy. * All European countries entering the EU are bound to restrictions that are favourable to their economy and development. * A European currency that reduces monetary…

Words 8985 - Pages 36