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SS2: GOVERNMENT - 1ST TERM

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  1. Electoral Process | Week 1
    5 Topics
    |
    1 Quiz
  2. Types of Electoral Process | Week 2
    5 Topics
    |
    1 Quiz
  3. Electoral Process Continues - Proportional, Representation, Repeated Ballot, Direct and Indirect Elections | Week 3
    5 Topics
    |
    1 Quiz
  4. Ballot Systems | Types of Voting | Week 4
    3 Topics
    |
    1 Quiz
  5. Organization of Election | Week 5
    4 Topics
    |
    1 Quiz
  6. Electoral Commission and Electoral Officers | Week 6
    4 Topics
    |
    1 Quiz
  7. Public Opinion and Mass Media | Week 7
    6 Topics
    |
    1 Quiz
  8. Civil Service | Week 8
    6 Topics
  9. Personnel Administration in the Civil Service | Week 9
    5 Topics
    |
    1 Quiz
  10. Public Corporation | Week 10
    9 Topics
  11. Commercialization, Privatization and Deregulation of Public Corporations | Week 11
    4 Topics
    |
    1 Quiz



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Privatization is the transfer of government ownership rights of a public enterprise to private investors. This transfer may be wholly or partially.

The shares are transferred either through any of these strategies: Sales of Shares, Control or Management of State-owned Assets, Encouragement of Private Sector Involvement in Public Activities, Shifting of Decision Making or Enterprises Operation in Accordance with Market Conditions, etc.

Government Privatization Policy is a deliberate attempt to stimulate economic growth and efficiency and reduce political interference, and wastages and increase the tempo of private sector activity. Bureau for Public Enterprises (BPE) handles and controls the Commercialization and Privatization of Public enterprises.

Reasons for Privatization of Public Enterprises:

(i) To reduce the burden of economic recession on the government. It shifts the problem associated with Public Enterprise to Private enterprise.

(ii) To reduce government expenditure.

(iii) To enable the government to restructure and reorganize the economy and divert government funds to diversify the economy.

(iv) To attract foreign investors. This will enhance economic growth.

(v) To create self-sustaining culture as more private sector participation is encouraged and a reduced government role in the provision of basic public services e.g. health, etc.

(vi) To reduce government interference and bureaucratic bottlenecks that increase poor performance and inefficiency.

(vii) To increase the efficiency of public enterprises and make them profit ventures.

Merits of Privatization:

(i) Privatization reduces the government’s financial burden of running public enterprises.

(ii) Government gains more through an increase in tax and profit generated.

(iii) It attracts foreign investors which will integrate the country into the globalization process.

(iv) It promotes competition, choice, and high quality of goods and services.

(v) It promotes efficiency and the promotion of high-quality goods and services.

(vi) It brings about innovation, and creativity and decreases the burden on the government.

(vii) It dynamites the Capital Market.

Demerits of Privatization:

(i) The government fails on one of its fundamental duties to promote and ensure social equality for the less privileged in society. The less privileged will be jeopardized.

(ii) It leads to uneven distribution of income. There will be a wide gap between the poor and the rich.

(iii) It leads to consumer exploitation.

(iv) It fuels inflation and can lead to loss of jobs and reduction in employment level.

(v) With Privatization there is no committed leadership and it can be jeopardized by corruption.

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