Does privatization decentralize economic power? discuss.
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yes private company can see the best way of sale and social welfare
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Privatisation does decentralise the economic power. As privatisation is transferring money, property from the government to private sector/ individual parties.
Although this brings more efficiency and objectivity to the company itself as it allows the company to earn more profit. However, it creates a wide disparity between the consumers. As the price cant be controlled by the government anymore so the company is able to charge any price they want.
Moreover, it leads to the creation of private monopolies. Where two or three companies get together and start selling a similar kind of product. As the government is unable to interfere in their mode of selling it creates hazardous effects to the economy.
Although this brings more efficiency and objectivity to the company itself as it allows the company to earn more profit. However, it creates a wide disparity between the consumers. As the price cant be controlled by the government anymore so the company is able to charge any price they want.
Moreover, it leads to the creation of private monopolies. Where two or three companies get together and start selling a similar kind of product. As the government is unable to interfere in their mode of selling it creates hazardous effects to the economy.
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