• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...


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.


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.


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The project objective is to investigate the practices of privatization in traditional market economies ...

    On top of that, the government should also provide adequate performance records of the business as well as clearly define their interest in the business after the privatization process. By 1992, Singapore's economy is by large a market economy, with defined property system, effective legal system and a clean and effective government.

  2. Bellway Plc is a holding company with subsidiaries; its main subsidiary company is Bellway ...

    6.1 6.2 6.4 7.3 EPS Bellway 134.60 127.5 106.0 78.6 63.2 Wilson Bowden 167.12 187.7 165.5 134.6 104.0 Persimmon 118.41 113.9 86.8 67.0 52.90 Dividend Yield Bellway 2.9 3.6 3.5 3.1 3.6 4.0 Wilson Bowden 2.9 3.3 3.2 3.7 2.7 Persimmon 2.4 4.0 3.4 3.6 3.6 EPS has doubled over

  1. Organizations are starting to realize that the process of change is continuous and traditional ...

    Source: Robbins, P. (2003), Organizational Behavior; Page 556-557. 2. In today's stiff competitive business world, changes are the most crucial elements and a must for every organization in order to be successful. Two of the most common types of forces for change, which often appear in today's organizations, are the Technology and Economic shocks.

  2. This report will establish the opportunities and threats presented to Sony by the EU ...

    Nevertheless, there are some consequences from merging, like when it comes to rationalising your staff because you have to make some redundant. This does decrease morale within the organisation and if staffs are not happy that they have lost colleagues it does lowers quality.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work