Meaning, reasons, advantages and disadvantages of privatization - SS3 Commerce Past Questions and Answers - page 1
What is the meaning of privatization?
Transferring ownership from private to public sector
Introducing market competition in government-controlled entities
Transferring ownership from public to private sector
Why do governments opt for privatization?
To reduce efficiency and effectiveness
To encourage economic liberalization
To increase public debt
What is one advantage of privatization?
Increased government control over industries
Enhanced accountability and transparency
Lower consumer choices and competition
What is one disadvantage of privatization?
Potential monopolies or oligopolies
Increased government involvement in industries
Reduced efficiency and productivity
What is the main reason for privatization?
Increased government control over industries
Economic liberalization and growth
Reducing accountability and transparency
How does privatization contribute to efficiency and effectiveness?
Privatization introduces competition and profit incentives, motivating private entities to improve efficiency, productivity, and service quality.
What are the potential social concerns associated with privatization?
Privatization may raise concerns about unequal access, affordability challenges, or neglect of social objectives in sectors related to essential services like healthcare, education, or water supply.