Advantages Of Privitization

1 Improved productivity: improving the efficiency will help the organisation to produce more products/ goods for the same overheads, whilst earning better profits

In an effort to move Argentina from an internationally isolated and state-dominated economy to one that encouraged international trade and foreign investments, Carlos Menem, in the early 1990s, initiated a wave of privatization, which included state-owned industries such as utilities (Feldstein, 2002). Following the examples of Chile and the emerging economies of Southeast Asian nations, Menem hoped this liberalization would foster growth in productivity and economic growth.

The prospect of deprivatization will impact managers of privatized firms because under this policy, certain past privatization would be declare illegal and the transactions would be reversed. These privatized firms would have to be either run as a state-owned enterprise or sold to another party.

Trade liberalization that enables countries to trade freely with few or no restrictions. When national economies are privatized and liberalized, they are in a better position to trade with each other. Reduction in transport costs, aversion of tax and non tax hindrances, promotion of vertical integration and expansion of product life cycles would all play a major role towards successful business.

to deliver public goods or services where state ownership is more efficient or reliable than private operators,

But apart from negative influence, a government can also contribute something positive to a company. Sometimes a government decides to protect certain sectors or products by giving

| More “paperwork” and responsibilities, business processes could be subject to more control and adjustment.

The need for financial stringency in public organizations due to budgetary pressures and tax resistance coupled with the need to Managing /balancing budget deficits and provide quality services with a reduction in revenue has always been a major challenge for public organizations. The need to save money and at the same time provide quality services, had forced government agencies to privatize and contract out. Recently, there is greater involvement of the private and nonprofit sector in public service delivery. More and more government functions in service delivery are now carried out by private and nonprofit organization. This is one part attributed to the belief that private organizations can provide services more efficiently and effectively than government operated services. And the other is the fact that it is cost effective and takes a lesser time frame. These two process are indeed unarguably beneficial to the government and private sector as well as the beneficiaries, but they can be also very daunting accompanied with huge challenges especially when not executed in the rightful manner. The case of the crummy contractor by Rainey depicts such a complex situation , where the process of contracting out was poorly conducted. The case highlights the demand for privatization and contracting-out and most importantly some of the challenges of privatization and contracting in government organization. it goes on further to identify some crucial pointed to be

For many nations, it is essential to choose a system of organization that successfully and thoroughly meets the needs of all the people. While some countries have supported the idea of communism and strong government intervention in the economy, others have limited the role and power of their governing body in the marketplace. For instance, in the United States, the government has a small role in the planning and monitoring of their economy. Individuals compete heavily against one another to receive the maximum profit for themselves in an sufficient manner. The former USSR, on the other hand, used large amounts of government control to restrict competition and control the output and distribution of the goods

Private enterprise and business are under the state’s guidance. It does not mean that state replaces private ownerships directly, however, it seeks to intervene and guide private sectors according to national strategies;

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.

When we examine public sector versus private sector, plenty of differences come to mind. In defining each, we learn a private sector in an economy consist of all businesses and firms owned by ordinary members of the general public. It also consists of all the private households in which people live. The public sector in an economy is owned and controlled by a government. It consist of government businesses and firms and goods and services provided by the government such as the national health service, state

The positive outcome of this strategy is that the company will get more profit. It is because the company no need to share the profits with others company. The negative outcome is that it is more risky. The government will take action to take over the company because there have no acknowledge of the company.

The economy in the United Arab Emirates has experienced substantial increases in the last 40 years. The UAE’s capabilities with the pearling and oil industries have given the region its necessary budgets to expand so rapidly. The economic policies in the UAE have gone through stages, since the birth of the region in 1971. Changes in economic welfare of the markets, and privatization policies are also key aspects in understanding the UAE’s economic liberalization and growth. In order to understand the UAE’s economic standard, economic liberalization must be analyzed. The argument of this paper will discuss how economic liberalization has occurred in the United Arab Emirates and is continuing to grow.

In Lebanon is it hard to finance the government because of the slow money growth and dollarization, which results in a burden to the ‘Central Bank’. Some of the measurements that the government has put primary emphasis on privatization are: the telecom sector and electricity, Beirut port, and water utilities. Lebanon’s is U.S’ fourth largest source of imported goods; the U.S has more than