what is privatization?aims of privatization?reasons for privatization in developing countries?advantages&disad

Question

this is a project so there must be a bit more information about privatization....

Answer 1

Privatization (sometimes privatisation, denationalization, or disinvestment ) is the process of transferring property from public ownership to private ownership and/or transferring the management of a service or activity from the government to the private sector. Privatisation can be partial or complete. It may also carry conditions as to the change in ownership.

The reverse process is nationalization or municipalization.

The term was coined in 1948 and is thought to have been popularized by The Economist during the 1980s.

The term has also been used to describe the buyout, by the ultimate majority owner, of all outstanding listed shares of an holding company, some of whose shares are listed on a stock exchange.

Answer 2

Privatisation is the selling of services run by the government to the private sector. Usually to try save government money and provide a better service

It doesn't always work. See the Privatisation of British Rail as an example of when it goes wrong (though some parts are good many mistakes were made)

Answer 3

Privation is defined by mgctouch below-the aim is enhance vital services trickle down and entities are run with better corporate image and standard.

Reasons exercised in developing countries is eliminate inefficiency, corruptions, non-profit scores,unnecessary injections of funds that results to misallocation of budgetted monies by the Govt,nepotism in employment,...etc The basic idea is relieve Goverment and square it to concentrate as a facilitator.

It has now come to a point that some sections cannot be purely extended to private hands- due to over-pricing,money laundry and siphoning of money to offshore accounts.

Answer 4

If you want a negative case perspective, read Stiglitz's analysis of the "Shock Therapy" given Russia following the Cold War and transition to an open market.

If you want a more positive perspective, read Gujarati.