PRIVATIZATION AND NATIONALIZATION

Question 1

What is nationalisation?

Answer 1

Nationalisation is the act of taking property previously owned by individuals or other legal entities into the ownership of the state.

Question 2

What is privatisation?

Answer 2

Privatisation is the act of transferring property previously owned by the state into the ownership of individuals or other legal entities.

Question 3

What is a reason for nationalisation related to inequality?

Answer 3

Nationalisation can reduce inequality by redistributing wealth from major assets like landholdings and mineral deposits for the good of all.

Question 4

How does nationalisation contribute to stability and security?

Answer 4

Nationalisation ensures essential industries and services continue to operate without the pressures of profit, reducing the risk of business failure.

Question 5

What economic advantage does nationalisation provide?

Answer 5

Nationalisation can achieve economies of scale by combining small private enterprises into a larger organisation, enhancing competitiveness.

Example: A single governmental organisation managing the international sale of Australian minerals to prevent local producers from being undercut by overseas buyers.

Question 6

How does nationalisation affect government power?

Answer 6

Nationalisation or the threat of it prevents non-government organisations from becoming too powerful, ensuring government control over key industries.

Question 7

What role does nationalisation play as a substitute for welfare?

Answer 7

Nationalisation can serve as an alternative to government welfare when major industries employing many people go bankrupt.

Question 8

How does nationalism relate to nationalisation?

Answer 8

Nationalism can drive nationalisation, especially in former colonies where local control over industries is demanded as part of sovereignty.

Question 9

What is a reason for privatisation related to competition?

Answer 9

Privatisation can create or increase competition, which drives innovation and efficiency, especially when government ownership inhibits competition.

Question 10

How does privatisation reduce political criticism?

Answer 10

Privatisation can deflect political criticism from government ownership to private owners, making it easier to manage public expectations and performance issues.

Question 11

What are examples of privatisation in Jamaica?

Answer 11

Examples include JPS, NCB, NMIA, Air Jamaica, and Telecommunication of Jamaica.