Question

what are your thoughts about private privatization? Issues and problems dealing with this topic ?

Answer 1

The transition from the government to the private sector of land, property or corporation is called privatization. The government is no longer the entity's owner or corporation. The mechanism in which a few people take over a publicly traded company is also called privatisation. The company's stock is no longer traded on the stock market, and the general public is barred from holding an interest in such a company. The corporation abandons the name ' limited' and continues to use' private limited' in its last name.

Privatization laws give government agencies authority and clarify investors ' right to participate, both domestic and foreign. Such regulations are accompanied by the wider legal framework components such as corporate and capital market rules. A primary function of a privatization law is to identify program scope and any exclusion of specific sectors or companies. Although the legislation that list the companies to be privatized, the drawback of doing so is that the listing is inflexible, with the consequent challenge of either withdrawing or adding companies as the system develops

A natural monopoly comes about when one is the most productive number of companies in an industry. Tap water, for example, has very large fixed costs. There is therefore no room for several companies to compete. In this situation, therefore, privatization would merely create a private monopoly that could attempt to set higher prices that would manipulate customers. Therefore, having a public monopoly is better than having a private monopoly that can manipulate the customer.

Most companies provide a significant public service, e.g., health care, education, and public transport. The profit motive in these sectors shouldn't be the primary goal of businesses and business. Of example, in the case of health care, it is believed that privatizing health care would mean that profit rather than patient care would be given greater priority. Furthermore, we certainly don't need a profit motive in a sector like healthcare to raise performance. When doctors treat patients, it's doubtful they'll try harder if they get a bonus.