Advantages And Disadvantages Of Privatisation

It has been 20 years since the privatisation of British Rail occurred in Great Britain. This is when the government’s ownership and infrastructure of the railway where passed on to the private sector in order for them to try make it a better efficient market. The government have multiple regulations in order to keep this industry from falling back in to a monopoly. There has been many benefits and problems that have occurred to both the producer and consumer while the government have tried to intervene in order control the pricing of rail tickets.

As it is generally assumed, health care is a social component that is mandatory in any developed society. Opponents argue that patients benefit from privatisation as they will have better choices because of the competition spawned as a result. They also suggest that patients will be subject to affordable and quality services (safeguarding free services) since competition will provide different clinical groups the opportunity to solicit valuable contracts that will protect pricing and quality services (El-Gingihy,

Privatization is an instrument in a wider collection of tools for attracting investment and to improve the structure and performance (level of output and efficiency) of economic sectors in a country. This is because to stimulate investment and to grow simultaneously in economies in Malaysia face significant challenges. They have legitimate expectations of strengthening sometimes-fragile infrastructure and bringing short supply of essential services into some sort of balance with demand. They have legitimate wider social goals that are ultimately just as important in the functioning of an economy. These goals include promoting interaction and shared opportunities between rural areas and cities, developing levels of literacy and skills, equitably

Globalisation is the process of integration of national economies through international trade of markets in goods and services, international trade in assets, and international spread of ideas, from consumer tastes to intellectual ideas (Frankel, 2006).

Today, firms have to deal with a global marketplace; marketers have no other choice. Participation in global marketing has begun to shift from a mere “option” to an imperative. The world is becoming more homogeneous. Distinctions between national markets

conflicts of interest can have long lasting detrimental affects on the company. To this end,

Privatizing the United States air traffic control operations may move closer to becoming a reality in 2017 – something most airline companies and other industry leaders have been pushing for a long time. Proponents of shifting away from government control introduced a bill last year that the incoming president has expressed a willingness to carefully consider. Rep. Bill Shuster (R), who helped draft the legislation, sees the long overdue shift to satellite-based air traffic management as the solution to lower costs for operators, while making air traffic safer and more efficient for all stakeholders. Whether global air travel is privately run or government controlled, call center voice recording activities will still be necessary to ensure control tower staff are fully trained and conversations are documented for

Select one (1) global industry, such as the automobile or cell phone industry. Next, use the Internet to research three (3) major international competitors within the chosen industry. Take note of manner in which the popular international business press (e.g., newspapers, magazines, e-zines, press releases, etc.) depicts the selected companies.

In order to understand the reasons behind privatisation of public services, it is essential to study the socio-political environment of the UK in the 1970’s. During this period of time, the UK was hit by the post-war crisis, which led the Tories British political party, also known as the Conservative Party, to lose dominance in the parliament. During this time, in the Ridley Report, the Thatcher shadow cabinet started suggesting about the need to break up the public sector and to disjoint unions. Initially, privatisation was subordinate to other policy themes. Nonetheless, during Margaret Thatcher’s governance starting in 1979, a certain degree of privatisation was put in place, notably regarding British Aerospace and Cable & Wireless (1). Nonetheless, during this period of time, the government’s aim was to privatise profitable entities, in order to increase revenues and therefore minimize borrowing from the public-sector.

Globalization describes the interdependence of nations, the opening up of markets through the removal of trade barriers, foreign direct investment, and enhancing of technological communications. Moreover, it is the shift towards the

There are two kinds of privatization, private provision of service with a “public” character and the process of returning to the private sector property’s or functions previously owned or performed by government. (Shafritz/Russell/Borick pg. 106-107). The private sector is guided by the motive of money and in the United States, where there is more of a free economy, the private sector is wider in comparison to countries like China. Some argue certain public goods and services should remain primarily in the hands of government. An example of this, is law enforcement, basic health care, and basic education. In comparison, some feel that government should steer rather than row.

Privatization (outsourcing) is the process of transferring ownership of property or business from a government to a privately owned entity. Privatization is an ongoing trend in many parts of the developed and developing world. It conjures both positive and negative emotions within the corporate arena as well as often ignite as much heat as light within an education discussion. Proponents of privatization maintain that the competition in the private sector fosters more efficient practices, which eventually yield better service and products, lower prices and less corruption. On the other hand, critics of privatization argue that some services should be in the public sector to enable greater control and ensure more equitable access.

| As markets become more global, increased competition from foreign competitors puts pressure on firms to innovate.  Domestic companies may need to come up with more efficient means of production, and will also tend to compete through innovation to differentiate their goods and services.  As communication increases through the internet and global media, consumers will have more choices in making purchase decisions.  Competition will become fiercer and companies will need to find a competitive advantage through innovative processes and products.

The de-privatization is a policy influenced by political interests. The politicians based their policies on what are the basic and essential needs of the population, which are public services, in particular the health system. They know that these agencies are sensitive issues for the people and use it as a bell policy for future elections. The privatize these agencies brings as a consequence the loss of control of the government. On the other hand, they used the public services as a method to keep the interests of the public and place those services in the direct control of the government and directly accountable to the elected representatives. Despite the fact that the de-privatization brings as a consequence the loss of dividends by privatized companies,

Savas (2005) argued that privatization initiatives had reached their fruition, realizing that public interest viewed the public/private partnership were strong opposition among labor unions and believed that the proposed contracts threaten employment. Situations such as perceived abuse in political power became a common place for grass root organizations advocating progressive change to the free enterprise markets by organizing campaigns to block elected officials who supported public/private partnerships. However, some of the service contracts which dominated the privatization methods were sheer volume activity; that thirty-two of the sixty-six privatization contracts were not a mixed of the private-public partnership; out of the $1, 148 million