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Since the early 1980s, Privatisation has been pursued by many developing countries. This pursuit was often the result of Privatisation being a condition for granting of much needed aid funds. However, there were instances in which governments simply could not afford to keep subsidizing State Owned Enterprises (SOE), and were unable to find the capital needed for expansion. Hence, Privatisation gained favour as a means to reduce subsidies, utilize private sector capital to fund expansion, and even benefit from revenues raised by divesting assets, and in the longer term from tax revenues from the now private enterprises. These cost savings and revenue additions may then be used by governments to fund social spending to society’s benefit, moreso the poorest. Notwithstanding, Privatisation can also have a negative impact on the wider society, especially the poorest, contingent on how it is gone about. For instance, it may leads to retrenchment and unemployment, or worsening of distribution if the process is undermined by corruption, and state assets gifted to small band of actors.Hence, it is important to examine the effect of Privatisation on developing societies’ poorest. The timely establishment of an effective regulatory environment can contribute significantly to how successful Privatisation is, both in terms of equity, and post-Privatisation firm performance. In this essay, theoretical arguments on the merits and demerits of Privatisation are first examined, after which three country cases are investigated, in the context of regulation’s impact on overall outcomes in Privatisation. Recommendations and Conclusions complete the exercise. Privatisation of public utility and infrastructure enterprises is the primary focus herein.


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