Essay Pros And Cons Of Privatization

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Privatization is being presented as being the only alternative to an inefficient, corrupt state. In fact, it is not a choice at all it is a mutually profitable business contract between the private company and the state .According to Savas (2000:1) Privatization is defined as the transfer of enterprise ownership in whole or in part from the state to private hands. Studies has proved that privatization of SOEs in other countries is economically beneficiary, while it also shows that countries can face a major bankruptcy and unemployment. The essay describes that the privatization of SOEs will lead to improved efficiently, Lack of political interference, increase competition and shareholders that will lead a firm to a better revenue in the future.

Privatization of the state owned enterprises in South Africa will lead to better management. Discuss
Agreed
Improve efficiency
Privatization will improve …show more content…

This is an important debate for the country as recently there have been situations where the government have been accused of corruption and fraud that lead to an insufficient funds to support South Africa Airways. The essay presented arguments in support of privatization of SOEs. Among the arguments put forward is that privatization of SOEs will lead to an improved efficiently? The study also revealed that this profession will enable government to focus on serious matters presently affecting the state of South Africa. Lastly, the study showed that the government will have external investors by privatization. The essay also addressed the arguments of privatizing SOEs. However, it has been shown that the country will have more increased revenue through the privatization of SOEs. It is the theme of this essay that more verbal confrontations including investors ought to be held about the theme for a satisfactory choice to be

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