Question

Write the merits and de-merits of privatization.​

Answer 1

Answer:

Potential benefits of privatisation

Improved efficiency. The main argument for privatisation is that private companies have a profit incentive to cut costs and be more efficient. ...

Lack of political interference. ...

Short term view. ...

Shareholders. ...

Increased competition. ...

Government will raise revenue from the sale.

Answer 2

Pros

   Greater efficiency.

   Lower taxes for residents.

   Reduced opportunities for political influence to drive services.

   Better services through competition.

Cons

   A greater opportunity for fraud and corruption to occur.

   Higher costs for consumers.

   Inflexibility due to long-term contracts.

   Profit, rather than residents' needs, as a primary motivator.

Explanation: