Improving national productivity:
Privatization helps to improve the national productivity. The main aim is to utilize the Govt. or natural resources to a maximum possible way. So in this way the national productivity increases.
Improving efficiency and profitability:
Necessary measures have been taken to safeguard the genuine rights and interests of the workers so efficiency of workers increases which results increase in profitability in every sector.
Achieving rapid industrialization:
The agenda of privatization covers a wide range of field like industries, banks, development finance institutions, telecommunication, power generation etc. So it covers a wide range and helps do mobilize the industry rapidly.
Privatization is a curse or Blessing:
Keeping in view the given objectives, the following are the merits of privatization:
- Better Management.
- Customer Care.
- Eliminate Corruption.
- Proper Incentives.
- Accountability.
- Modern Technology.
- NO Political Interference.
- Healthy Competition.
- Increase in National Income.
- Better Efficiency.
1- Better Management:
The business would be run on strict business principles and there will be no compromise on principles so the management would be better.
2- Customer Care:
The firms will enhance their efficiency by providing better services to the customers.
3- Eliminate Corruption:
As there will be strict policies of check & balance so it will be helpful to eliminate corruption.
4- Proper Incentives:
Privatization sectors attracts the customers by giving the incentives to the economic growth.
5- Accountability:
As the employees know that their work will be checked os they will perform their duties carefully.
6- Modern Technology & Banking:
The enterprises or banks will use modern ways of transactions such as world trade or online banking to save the time of staff as well as of the customers.
7- No Political Interference:
After privatization the business has its separate entity. There is no interference by the Govt. in any dealing so business will not be effected with any political instability.
8- Healthy Competition:
As most of the firms would be privatized so there will be healthy competition among various firms or businesses and leads to betterment in business system.
9- Increase in National Income:
Everyone will work hard because the output and profit is in the private ownership so social and economic life improves.
10- Better Efficiency:
As the people know that their reward will be greater as to their work so they work hard and their efficiency increases.
CONCLUSION:
From the discussed merits we arrive at the conclusion that privatization is a blessing for any economy. Where there is the implementation of privatization, there will be better results for the economy to increase the productivity, new technology, labour efficiency etc.
