Advantages Of Privatization In Sri Lanka

Deardorff (2001) stated that, direct foreign investments refer to the particular countries and kinds of countries toward which a country's exports are sent, and from which its imports are brought, in contrast to the commodity composition of its exports and imports. Besides, direct foreign investments also can be defined as the situation in which a foreign investor owns10% or more of the ordinary shares or voting power of a local company. Thus, the pattern that the direct foreign investments follow is that of a bilateral trade.

Privatization has grown exponentially over the years as the government continues to try to find more economic ways to conduct business. Through the use of contracts, this is achieved by utilizing the lowest bidder. Should the work being done not meet the standards set forth, the contract is not renewed and the process begins again saving the government money by not having to hire Civil Servants who are then employees of the government, whom do not have a contract and are very difficult to get rid of should their work not be satisfactory.

Another way to deal with overcrowded conditions is for the government to save money by allowing private businesses to perform some government functions (privatization). This policy has largely affected the corrections system, especially as state and federal government face an increasing number of prisoners and , as a result, a growing need to build more prisons. People that are for the privatization of prisons believe that private firms would both

1. Privatization is the transfer of ownership of property or businesses from a government to a privately owned entity. In the case of the corrections system privatization is like when a government owned prison transfers to a private owned prison. Privatization can effect corrections and influence corruption in many ways. It effects corrections because money is a big difference between the two.

Understanding that heavy economic repression was unsustainable and leading to the worsening economic conditions, the liberalization reform plan aimed to decentralize markets and relax some restrictions set by the previous government. The first policy deregulated the commodity market by reversing price freezes, privatizing previously nationalized

An Investment is where there’s 2 ways you can either save your money up till you have the right amount or you can either invest over a long time. Also you could buy something with increasing the value of your profit.

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.

There are two common areas of privatization, transportation and garbage collection. In Boston for example, the Metropolitan Boston Transit Authority undertook a huge effort to privatize public transportation. The result was a "private company and a coalition of unions each tentatively chosen to run their own network of MBTA buses, at costs considerably below what the authority now pays according to a Boston Globe article (Metro, Monday Feb. 3, 1997). How they arrived at this strange equation is unknown but the stated goal was to cut costs though competition. "Such arrangements reflect the belief that competition brings out the best among contenders-and that by inserting government units into a competitive environment, service recipients stand to gain much while risking little." (Ammons, D. and Hill D. pg. 12).

Investment abroad which can also be referred to as foreign investment is defined as the flow “of capital from one nation to another, in exchange for significant ownership stakes in domestic companies or other domestic assets. Typically, foreign investment denotes that foreigners take a somewhat active role in management as a part of their investment. Foreign investment typically works both ways, especially between countries of relatively equal economic stature.” Foreign investment is vital for all countries as it leads to economic growth and affluence. Foreign investment has positive contributions to all countries, but developing countries can experience major positive effects due to foreign investment. Canada is a country which greatly exemplifies

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.

Public Private Partnership or PPP is a subject being given the increasing attention that it has been receiving in context of the sweeping changes in India's economic policies. We are all aware, along with the dismantling of the license permit raj a greater role is envisaged for the private sector in these new policies. Now it seems that, the private sector is not only to be facilitated in its growth, but there it can be taken on board as a partner by the government in the provision of public services. This of course, is the purpose of PPP. For those of us who have had a long innings in Government, such thinking represents a paradigm shift from the way things were always done.

In this paper, I will define privatization and explore different published articles that discuss contracting out to the

Globally the results of privatization have been detrimental. The problems have ranged from water quality, sewage spills, irreversible environmental effects, job cuts and lack of infrastructure investments. All in an effort to reduce operating costs and thus increase profits for shareholders.

Definition: An investment made by a company or entity based in one country, into a company or entity based in another country.

An investment also known as a security is a pledge of money from an individual, government, or cooperation that is expected to accrue additional wealth on top of its original dollar amount. An investment can be a long-term or short-term obligation depending on the investor’s goals and/or assets they choose to invest in. The investment decision process is a two-step process which is necessary to make a sound trustable and efficient investment. The first step involves an evaluation of the investment you as the investor are interested in committing money towards, including characteristics of the security (i.e. how it acts in the current market, how the current/future market may react to this investment and possible returns on your investment). Finally, the management of your investment portfolio, including how often it should be revised, how the performance of your securities should be measured (how often they should be measured), and other important aspects of your current investments. Investing revolves around one basic concept, improving our future, investors invest money today to improve their welfare in the future which is why understanding what an investment is and the process of decision making before investing is extremely important.