Meaning, Merits and Demerits of Privatization
- Meaning of Privatization
- Reasons for Privatization of Public Enterprises
- Merits of Privatization
- Demerits of Privatization
What is Privatization?
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, reduce political interference, and wastages and increase the tempo of private sector activity. The Bureau for Public Enterprises (BPE) handles and controls the Commercialization and Privatization of Public enterprises.
Reasons for Privatization of Public Enterprises:
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