The Role of Privatization in Improvement of Productivity in Public Sector
Name MARAQITA JONES
Course PSC 7110
Dr.James Kramer
The Role of Privatization in Improvement of Productivity in Public Sector
Abstract
Privatization is the art of transferring asset ownership from public to private hands. The emphasis plies in the ownership of physical assets. It is generally a once-and-for-all sale of a state –owned asset, in this case the government always retains no governance control and no operational risk, though usually retains the regulatory control over the assets. The rationale of the private sector hinges on the difference in incentives between the public and private sectors. Usually the objective of the private firm is to maximize profit, which is measured relatively and is tied to manager’s performance. On the other hand public-sector organizations, have a more complex set of objectives which involve the maximization of social welfare which are hard to measure. The Sections of the paper begins with a brief overview of privatization as well as providing examples of Privatization taking place around the world. The analyzation of the effects of privatization on economic growth in developing and under-developed countries. It also examines the relationship that exists between growth in the public sector and privatization from an incentives perspective. Then Finally useful conclusions regarding privatization as an economic growth policy.
Table of Contents
Introduction…………………………………………………………….4
Forms of privatization………………………………………………….5
Rationale behind privatization…………………………………………..5
Role of private sector and privatization in health systems……………....7
Impact of privatization in economic growth……………………………..7
Privatization and public development…………………………………....9
Importance of privatization………………………………………………10
Role of privatization in improvement of productivity in public sector….12
How to privatize…………………………………………………………..15
Conclusion……………………………………………………………….17
Role of Privatization in Improvement of Productivity in Public Sector
Course PSC 7110
Dr.James Kramer
The Role of Privatization in Improvement of Productivity in Public Sector
Abstract
Privatization is the art of transferring asset ownership from public to private hands. The emphasis plies in the ownership of physical assets. It is generally a once-and-for-all sale of a state –owned asset, in this case the government always retains no governance control and no operational risk, though usually retains the regulatory control over the assets. The rationale of the private sector hinges on the difference in incentives between the public and private sectors. Usually the objective of the private firm is to maximize profit, which is measured relatively and is tied to manager’s performance. On the other hand public-sector organizations, have a more complex set of objectives which involve the maximization of social welfare which are hard to measure. The Sections of the paper begins with a brief overview of privatization as well as providing examples of Privatization taking place around the world. The analyzation of the effects of privatization on economic growth in developing and under-developed countries. It also examines the relationship that exists between growth in the public sector and privatization from an incentives perspective. Then Finally useful conclusions regarding privatization as an economic growth policy.
Table of Contents
Introduction…………………………………………………………….4
Forms of privatization………………………………………………….5
Rationale behind privatization…………………………………………..5
Role of private sector and privatization in health systems……………....7
Impact of privatization in economic growth……………………………..7
Privatization and public development…………………………………....9
Importance of privatization………………………………………………10
Role of privatization in improvement of productivity in public sector….12
How to privatize…………………………………………………………..15
Conclusion……………………………………………………………….17
Role of Privatization in Improvement of Productivity in Public Sector
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