Question

impact of privatization on economic growth


plz explain in 2to3 paragraph, I have to make a ppt for school​

Answer 1

Answer:

Privatization directly shifts the focus from political goals to economic goals, which leads to development of the market economy (Poole, 1996). ... Instead, privatization enables countries to pay a portion of their existing debt, thus reducing interest rates and raising the level of investment.

Privatisation deters government influence and aids economic growth. As private bodies do not have a political agenda, they focus more on spurring growth and efficiency within an organisation for greater generation of revenues. State-run companies enjoy a monopoly and remain unperturbed by competition in the market

The privatization of SOEs in transition economies increases employment and productivity. The probability that firms export increases due to privatization, primarily because their attitudes about risks and profits change. Privatization may lead to a virtuous cycle among productivity, exports, and employment