Ganesh Kumar BaskarAIR 7 · CSE 2019 · 176 wordsTheir whole copy
Opening · a definition
Privatization refers to handing over the jobs done by public sector to a private party under a common contract with the government.
It will improve quality of public service
Body · points
Profit motive leads to better customer service. eg Air India vs Indigo
Leads to cost efficiency due to new management principles - like Taylors Time and motion studies. eg. Public sector banks started performing well when they were put in stock market
Reduction of political interference leads to commercial decision making.
It will reduce corruption
- Less political involvement reduced scope for corruption
- Stock holders derive better accountability than passive-government
- Strong corporate governance framework
Cons of privatisation
- Increase in cost of service leading to issue of affordability. eg: Railways
- Profit motive leads to neglect of vulnerable sections and poor regions
Close
eg: BSNL serves North East and Naxal affected area Private players like Airtel do not provide quality service there.
Public Service ↓ leads to ├─ Leads to profit ──→ Privatise └─ not profitable need affordability ──→ keep public