Privatization

1. Ø Definition of Privatization
2. Ø Causes of Privatization
3. Ø Merits of Privatization
4. Ø Demerits of Privatization
5. Ø Conclusion 

Definition

Privatization is a process of transferring ownership of a business, enterprise, agency or public service from the public sector (government) to the private sector (business). 

Causes of Privatization

1. To promote the expansion and efficiency of private sectors.
2. ØTo encourage competition specially to cancel the monopolies.
3. ØSupport wider capital ownership and encourage employee owner relation
4. ØTo reduce the size and scope of public sector.
5. ØTo reduce the opportunities for misuse of public property. 

Merits of Privatization

1. Ø Improve performance
2. Ø Promote competition
3. Ø Reduce burden of government
4. Ø Turning the sick units into profitable units 

Demerits of Privatization

1. ØSurplus employees
2. Ø No branches in rural areas
3. Ø Jobs for relatives
4. Ø Loans for few persons

  Conclusion

  Privatization is a way to utilize the resources of the country more efficiently, improvement in productivity and turning the sick units into profitable enterprises.