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Privatization:Privatization is a process in which the ownership transfers from Govt. hand to private hand.

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Introduction

Privatization: "Privatization is a process in which the ownership transfers from Govt. hand to private hand. Objectives: The main objectives of this programme are to reduce the drain of Govt. resources caused by losses of the state owned enterprises, create greater opportunities for the private sector to expand and modernize these enterprises, improve productivity, efficiency and profitability, develop a valuable capital market and release resources for development of social and physical infrastructure. The broad objective of privatization and deregulation are as follows. Creating a liberal economic environment: The main objective of privatization is to create a liberal economic environment. The private sector is not bound to work as to Gov.'s instructions so it ends the monopoly of Govt. ...read more.

Middle

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: 1. Better Management. 2. Customer Care. 3. Eliminate Corruption. 4. Proper Incentives. 5. Accountability. 6. Modern Technology. 7. NO Political Interference. 8. Healthy Competition. 9. Increase in National Income. 10. 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. ...read more.

Conclusion

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. ...read more.

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