ipl-logo

Disadvantages Of Privatization Essay

2131 Words9 Pages

Ever since its introduction by the British government, under Margaret Thatcher, privatization has been widely used by governments all over the world. In fact, it is arguable that public officials have become increasingly supportive of privatization as some sort of panacea for the financial troubles of government. Additionally, “under the ideological banner of globalization, America has made neo-liberalism and its policy of liberalization, deregulation and privatization a must developmental capsule on a global scale” (Odukoya 2007). Although a vast amount of research has not been conducted on privatization, there are a number of theoretical perspectives on the subject matter. This essay will therefore seek to provide a critical assessment of the theoretical and empirical justifications for privatization.
Privatization, broadly speaking, has been defined as “the deliberate sale by a government of state-owned enterprises (SOEs) or assets to private economic agents” (Megginson and Netter 2001). Other academics characterize privatization as “a key component of structural reform programs in both developed and developing economies. The aim of such programs is to achieve higher microeconomic efficiency and foster economic growth, as well as reduce public sector borrowing requirements through the …show more content…

This is due to the fact that privatization includes sweeping changes, often to “institutional archetypes which structure the governmental, societal, and economic arrangements and behaviours, it can be both challenging and problematic” (Carter 2013). Economies have been known to go into decline due to privatization and we cannot forget the social jitters, if not outright unrest, that can be caused by layoffs of large numbers of workers. Also, an increase in the unequal distribution of wealth can cause its own social and political

Show More
Related

  • Assess The Impact Of Privatization Policy On Scotland During The 1960s And 1970s

    131 Words  | 1 Pages

    Scotland during the 1960s and 1970s witnessed an increase in inequality due to UK government policy. Prime minister of Britain Margaret Thatcher followed privatization policy Major nationalized industries were sold to the private sector. People of Scotland saw that this policy was unfair and unsuccessful because it feeds only the interest of the rich people, because of this policy considerable number of people became jobless. Privatization policy impacted negatively on Scotland, the very poorest of the household have become even poorer and the richest of individuals have become richer. In addition, the rate of unsafe work, part-time work and out agency self-employment increased, even reducing the tax rate was provided only to the people who

    Read More

  • LCBO Privatization Essay

    1417 Words  | 6 Pages

    What is privatization? How does it work? Why do we have it? These are a few questions that are running through the minds of millions of Canadians every day. There are many current issues and debates based around the topic of privatization going on with small businesses, large businesses and most importantly the government.

    Read More

  • Organized Labor In The 1980's

    574 Words  | 3 Pages

    According to Jake Rosenfield, organized labor had already begun its decades-long decline. During the 1970’s and the 1980’s unionization rates nearly halved and this was especially brutal for organized labor. It was then that economic conditions had begun to change. Then organized labor had begun to disappearing in the sector where it has had the greatest impact on people’s livelihoods. Even before the 1980’s, Jiwook Jung explains that corporate America had experienced waves of downsizing.

    Read More

  • Positive And Negative Effects Of American Industrialization Essay

    437 Words  | 2 Pages

    The American Industrialization was in the late 1800’s making many things to improve the economy. The American Industrialization was caused by multiple factors, some of the factors included a growing population, a willing work force, high tariffs, among many more. These effects made people willing to work at lower wages so they can get jobs and buy American made goods. There were many outcomes of the Industrial Revolution, both positive, like improving people's lives, and negative effects, like exploitation of workers. The positive effects of American Industrialization is how it make work cheaper, employed thousands of workers, and improving people’s lives.

    Read More

  • Privatization Of Space Exploration Essay

    716 Words  | 3 Pages

    …Write an essay that synthesizes material from at least three of the sources and develops your position on the extent to which privatizing space exploration is beneficial. The net outcome of the privatization of space exploration is beneficial because it can increase innovation, leading to lower costs and faster progress in space technology and exploration. This “privatization” is referring to the transfer of the industry of space exploration from government agencies to private companies. It is difficult to view this topic in a sense of bad or good due to the fact that there is an abundance of factors to take into consideration.

    Read More

  • Labor Union Membership Controversy

    626 Words  | 3 Pages

    This research will focus primarily on three scholarly views. Michael Wachter (2007), an economy scholar from the university of Pennsylvania argue that “the cause of this unrelenting decline is a single, fundamental factor—the change in the United States economy from a corporatist-regulated economy to one based on free competition” (p. 581). This study supports the idea that union membership declination occurred because of the US pecuniary alteration which gives more power to companies as opposed to the government controlling the market. Wachter argues that such a decision has a trickle-down effect on the economy.

    Read More

  • The Pros And Cons Of Progressive Reform

    913 Words  | 4 Pages

    The Progressive era became an iconic time that would not exist if the U.S. was not a democracy. Individuals became empowered to change after seeing all the problems that industrialization created. Progressive era reformers in the late 19th to the early 20th century believed in constructing a new order to improve American welfare. During the progressive movement many progressives such as Robert F. La Follete and Jane Addams sought to generate reform for fairness and to enhance moral values. As a civic duty, progressives such as W.E.B Du Bois fought against the racial injustice in America as well as establish a new order to create a more virtuous society.

    Read More

  • Differences Between New Labour And Thatcherism

    2024 Words  | 9 Pages

    The term Thatcherism is centered around the reform programme of the Conservative party led by Margaret Thatcher in the 1980s. The heart piece of the programme was the economic reform programme, that favored freedom instead of social insurance, by emphasizing deregulation in the private sector, privatisation of companies and tax reductions and a ‘give to get’ scheme to curb unemployment. Especially the privatization of companies played a huge role in minimizing the

    Read More

  • Centralized Vs Decentralized Organization Essay

    467 Words  | 2 Pages

    Explain the difference between a centralized organization and a decentralized organization. A centralized organization generally relies on a single person or a very small, select group of people to make the decisions for the rest of the organization to follow. Pertaining to criminal justice, this would be a national police force under the federal government or, in the more extreme cases, under a single totalitarian leader. Examples of nations with a centralized police force are Israel, Denmark, Belgium, and Sweden, where centralization has seen some success (Berkley, 1970). Contrarily, examples of centralization could also be found in Nazi Germany, the Soviet Union, and fascist Italy and Spain (Berkley, 1970).

    Read More

  • Market Revolution Pros And Cons

    1236 Words  | 5 Pages

    The market revolution, which started in 1815, transformed worker lives, and improved the nation vastly; although it also dropped the economy as well. The traditional market, which was based upon power generated by animals and water, was slow in activities such as transportation. The growing nation underwent peace, which then catalyzed the reform of the organization of the economy. As such, transportation was heavily improved upon, along with manufacturing, banking, and commercial law. However, there were also two panics during the time that occurred that led to many Americans who were anxious and uncertain about working in the country.

    Read More

  • Pros And Cons Of The Privatization Of Space

    1030 Words  | 5 Pages

    Definitions Private space contractors - non-governmental organizations that fund endeavours in space. While some of these companies plan to pursue space research, others plan to mine asteroids. Kármán line - located 100 Kilometers (62 miles) above sea level, the Karman line the boundary between Earth’s atmosphere and space commonly knowns as where space starts from. International Space Station (ISS) - the ISS is a large spacecraft that orbits Earth which is a home for astronauts as well a data collecting science lab. Launched in 1998 and receiving its first crew in 2000, astronauts from around the world have lived on it ever since.

    Read More

  • The Pros And Cons Of A Contingent Workforce

    1030 Words  | 5 Pages

    Throughout my report I will seek to investigate the pros and cons of operating a contingent workforce. I will look at how it affects the landscape of an organisation and the impacts it has on retaining a competitive advantage. I will also look at whether it is best practice from a Human Resource (HR) point of view and how HR can best manage to retain the knowledge these individuals have and are given while working with an organisation. A contingent workforce can be defined as ‘Is a provisional group of workers who work for an organization on a non-permanent basis, also known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants.’

    Read More

  • Advantages And Disadvantages Of Government Intervention

    1195 Words  | 5 Pages

    1) Government may intervene in a market in order to try and restore economic efficiency. One of the ways the government intervention can help overcome market failure is through the introduction of a price floors and price ceilings. If prices are seen to be too high, price ceiling or a maximum price could be imposed on a market in order to moderate the price of the product. This policy is often used when there are concerns that consumers cannot afford an essential product, such as groceries. The effect of a maximum price could create a shortage as it could lead to demand exceeding supply for that particular good.

    Read More

  • Pros And Cons Of Modernization Theory

    1057 Words  | 5 Pages

    In our world today, we see progress everywhere we go. We see new innovations, we think of new ideas, and we hear all kinds of improvements in our current technology. Every day, people are coming up with ways on how to make life easier or how to communicate with each other faster. “Modernization theory emphasizes the process of increasing social integration and its economic, social, and cultural ramifications” (Linder and Strulik, 2011). But the question is, how do people come up with all these designs?

    Read More

  • Anti-Globalization

    802 Words  | 4 Pages

    Globalization affects economic and political development at large scale Prince Kumar Humber College Abstract This essay discusses the anti-globalization movement that began with the large-scale demonstration. Outlining the ways in which the anti-globalization movement is opposed to economic globalization. This essay discusses some arguments in support of globalization.

    Read More

More about Disadvantages Of Privatization Essay

Open Document