Interview Questionnaire
DETAILED REPORT ON PRIVATISATION AND DISINVESTMENT
BY:
RADHIKA, RASHMI, REENA RIDDHIMA & SHWETHA,
INTRODUCTION TO PRIVATISATION
The word privatisation has been receiving much attention in business, government and academic circles on a global platform.
This phenomenon of privatisation can be linked to a revolution or boon. Privatisation techniques have already been tried in countries like Great Britain, China, United States, Turkey, Brazil, Mexico, & Japan. In our country to a beginning towards privatisation has been made with the sale of upto 20% of the equity capital of 30 plus select public sector units (psu’s), first to mutual funds and financial institutions and later to the investing public.
HISTORY
THE history of privatisation is very short-just 10-15 years old to be precise. The real disinvestment started only in 1980’s, the word privatisation first made its appearance in late 80’s. The credit for inventing the word goes to Peter.F.Drucker, which used the term first in his famous book, the age of discontinuity in 1969. Ten years later, Margaret Thatcher became prime minister of Great Britain and it was she who gave practical shape to privatisation. Later country after country fell in line with the Great Britain in move toward privatisation.
RATIONALE OF PRIVATISATION
According to supporters of privatisation, the rationale for privatisation and disinvestment is as follows: * PERFORMANCE. State-run industries tend to be bureaucratic. a political government may only be motivated to improve a function when its poor performance becomes politically sensitive, and such an improvement can be reversed easily by another regime. * INCREASED EFFICIENCY. Private companies and firms have a greater incentive to produce more goods and services for the sake of reaching a customer base and hence increasing profits. a public organization would not be as productive due to the lack of financing allocated by the entire government's budget that must
BY:
RADHIKA, RASHMI, REENA RIDDHIMA & SHWETHA,
INTRODUCTION TO PRIVATISATION
The word privatisation has been receiving much attention in business, government and academic circles on a global platform.
This phenomenon of privatisation can be linked to a revolution or boon. Privatisation techniques have already been tried in countries like Great Britain, China, United States, Turkey, Brazil, Mexico, & Japan. In our country to a beginning towards privatisation has been made with the sale of upto 20% of the equity capital of 30 plus select public sector units (psu’s), first to mutual funds and financial institutions and later to the investing public.
HISTORY
THE history of privatisation is very short-just 10-15 years old to be precise. The real disinvestment started only in 1980’s, the word privatisation first made its appearance in late 80’s. The credit for inventing the word goes to Peter.F.Drucker, which used the term first in his famous book, the age of discontinuity in 1969. Ten years later, Margaret Thatcher became prime minister of Great Britain and it was she who gave practical shape to privatisation. Later country after country fell in line with the Great Britain in move toward privatisation.
RATIONALE OF PRIVATISATION
According to supporters of privatisation, the rationale for privatisation and disinvestment is as follows: * PERFORMANCE. State-run industries tend to be bureaucratic. a political government may only be motivated to improve a function when its poor performance becomes politically sensitive, and such an improvement can be reversed easily by another regime. * INCREASED EFFICIENCY. Private companies and firms have a greater incentive to produce more goods and services for the sake of reaching a customer base and hence increasing profits. a public organization would not be as productive due to the lack of financing allocated by the entire government's budget that must