Privatization And Commercialization

Question 1

What is privatization?

Answer 1

It is a term used to describe the permanent or temporary transfer of ownership rights of enterprises from the public to the private sector.

Privatization can also entail a transfer of the provision of a good or service from the public sector to the private sector with the government retaining the ultimate responsibility of providing the service.

Privatization as a public policy is premised on the fact that business should be left for those who have the capacity and are better equipped to handle them while the government focuses on its core duty of governance, acting only as a regulator through its agencies.

Question 2

What are the goals of privatization according to Anyawu?

Answer 2

1. To achieve public policy objectives of financial stability
2. High economic growth
3. Stable Prices
4. Full employment
5. Increased levels of output and equilibrium
6. Balance of payments positions