Saved Bookmarks
| 1. |
Write a note on privatization. |
|
Answer» The process in which ownership and management of industrial units under state control are handed over or transferred to the private sector is called privatization. Privatization is done to increase the efficiency of public sector i.e. government-controlled industries. Privatization is done through two methods: First, those areas which are reserved for public sector are opened for the private sector. State keeps the ownership of state-owned companies under its control and gives the charge of management to the private companies. Alternatively, the state keeps management in its own hand and gives ownership to the private company. Advantages of Privatization: Privatization increased the number of production units in industrial sector. It increased production of industries that were either capital intensive or produced consumable goods. Efficiency of public sector improved due to privatization of public sector enterprise. |
|