Privatization
MPS Paper
Privatization and its impacts
‘What virtually all privatization have in common is that the organization has had to undergo radical and uncomfortable change to enable it to survive in the competitive world of the markets and private sector.’ Critically discuss this statement and the choices for the public sector.
Evaluate the costs and benefits of corporatization, trading-fund, and contract-out as forms of privatization.
Background A welfare state is a place where the government plays a role of protecting and promoting the economic and society well-being for her citizens. The concept of welfare state is used to set up on the equality of opportunity for all people in the society, and the wealth needs to be distributed equally. The government has public responsibility to take care of the vulnerable groups and to provide the basic necessities to them. The welfare state is characterised with a combination of democracy, welfare and capitalism. It is about re-distributing taxation and wealth in order to reduce the income gap between the rich and poor. In other words， it involves a transfer of funds from tax revenue for providing public service to citizens, such as education or healthcare. However, such welfare polices involve using more financial resource in the society which may exceed the budget. When the expenditure of state is more than the revenue of state, the financial crisis will occur. The state then faces the budget deficit and entitlements. If it fails to cut government spending or raise taxes to increase the income, state bankruptcy, economic depression and political upheaval would possibly occur, which affect the legitimacy of government.
Thus, the welfare state suffers from morbid obesity, a reform on the relationship between public sector and private sector is required as a remedy. Reducing the size of public sector became the priority aim of the public enterprise in the 1980’s
Definition of privatization
Privatization can
Privatization and its impacts
‘What virtually all privatization have in common is that the organization has had to undergo radical and uncomfortable change to enable it to survive in the competitive world of the markets and private sector.’ Critically discuss this statement and the choices for the public sector.
Evaluate the costs and benefits of corporatization, trading-fund, and contract-out as forms of privatization.
Background A welfare state is a place where the government plays a role of protecting and promoting the economic and society well-being for her citizens. The concept of welfare state is used to set up on the equality of opportunity for all people in the society, and the wealth needs to be distributed equally. The government has public responsibility to take care of the vulnerable groups and to provide the basic necessities to them. The welfare state is characterised with a combination of democracy, welfare and capitalism. It is about re-distributing taxation and wealth in order to reduce the income gap between the rich and poor. In other words， it involves a transfer of funds from tax revenue for providing public service to citizens, such as education or healthcare. However, such welfare polices involve using more financial resource in the society which may exceed the budget. When the expenditure of state is more than the revenue of state, the financial crisis will occur. The state then faces the budget deficit and entitlements. If it fails to cut government spending or raise taxes to increase the income, state bankruptcy, economic depression and political upheaval would possibly occur, which affect the legitimacy of government.
Thus, the welfare state suffers from morbid obesity, a reform on the relationship between public sector and private sector is required as a remedy. Reducing the size of public sector became the priority aim of the public enterprise in the 1980’s
Definition of privatization
Privatization can