Privatization comes in various degrees, from the outright selling or transfer of government ownership of assets (for example public utilities), to, as is more common in the continue reading essay about privatization of social security. Excerpt from essay : water privatization how privatization of water is bad for the world water is a scarce resource, a fact that is becoming more evident as time goes on and pollution becomes more evident. In privatization, ownership is transferred from the state to new private and public owners, which may include management, employees, local individuals, institutions, and foreign investors, with the state also retaining a certain percentage of ownership after privatization.
Any serious inquiry into the meaning of privatization must begin, therefore, by unloading the complex freight that the public-private distinction carries in this section i analyze, first, the general uses of the public-private distinction and, second, the recent political application of the concept of privatization. Privatization comes in various degrees, from the outright selling or transfer of government ownership of assets (for example public utilities), to, as is more common in the united states - the contracting of goods or services to private firms. The case against privatization from the anti-privatization forum in johannesburg, trevor ngwane asserts that water is a basic need and as such it is the government that is mandated to ensure it provides all basic needs and services which is in the public interest. The oecd called the bt privatization the harbinger of the launch of large-scale privatisations internationally 29 in the years following, the british government proceeded with huge public share offerings in british gas, british steel, electric utilities, and other companies.
Public utilities, public enterprises, privatizations, liberalizations and related topics have been the object of far reaching and intense debate among economists, politicians and practitioners for more than a century. Privatization (also spelled privatisation) can mean different things including moving something from the public sector into the private sectorit is also sometimes used as a synonym for deregulation when a heavily regulated private company or industry becomes less regulated. Public utilities such as gas, water, electricity, and sanitation services are provided to citizens nationally through a combination of public, private, and quasi-public entities.
The application of their lessons to privatization will help resolve the conflict between the public and the private providers, and identify cases where continued public provision makes sense. Another argument widely used in support of water utilities privatization is the efficiency hypothesis which suggests that performance will improve under private ownership because it is 'obviously' more efficient than the public sector. Privatization is the process of transferring ownership of a business, enterprise, agency, charity or public service from the public sector (the state or government) or common use to the private sector (businesses that operate for a private profit) or to private non-profit organizations.
Privatization in malaysia, privatization is generally defined as the transfer of ownership from a government public sector to a private sector privatization applies when there is a transition of business activities, service or industry from a publicly traded and owned company to a privately owned company. Privatization is a broad term, which in the water industry, ranges from providing basic services and supplies, to the design, construction, operation, and ownership of public utilities one form of privatization is called outsourcing or o & m contracting. When local governments turn to private companies to manage vital utilities like water, energy, and public health, the poorest customers often loseby law, private utilities can set their rates. Privatization is an umbrella term that encompasses a broad range of private sector participation in public services partnerships between the public and private sectors in the water industry range from providing basic services and supplies to the design, construction, operation, and ownership of public utilities. Privatization of public utilities are, and who we can expect the winners and losers of privatization to be, i hope to make some sense about why those who urge privatization and those who resist it seem to be speaking.
Those who have opposed privatisation argue that the public utilities were nationalised in the first place in the public interest the utilities are products and services that are essential to all members of the general public. Odushola (2001) in a paper titled socio-economic implication of privatization of public utilities in nigeria opined that the process was necessitated by the performance of multinational companies and that changing of ownership may bring relief to the privatized ones. Water privatization would take this process out of the public sector and allow a corporation to be able to take over the system for profitability there are definitely some advantages in allowing this to happen, but there are some disadvantages to such a system as well.
Sterile philosophical debates about 'public versus private' are often detached from the day-to-day world of public management, the new jersey privatization task force reported. Privatization cannot be classified as ordinary commodities, given the implications of their non-accessibility and affordability of some of these utility items to the citizenry, especially the poor and the vulnerable groups in the society. Similarly, the public may have negative opinion on privatization as a diverging transfer to public utilities or assets to private investors the adverse reaction on outcome of elections in that constituency will be increased if the ruling party encounter a close race with the other political parties.