• Advantages Of Privatisation

  • The ability to earn from privatisation comes from public economical values

  • Privatisation Helps The Government To Reduce Debt In 3 Ways -:

    • The government no longer has to maintain the operation of state owned enterprises

    • They earn revenue from the sale of privatised business

    • Private firms pay corporate tax

  • It reduces the cost to taxpayers who no longer have to pay to the finance the operation of businesses

  • Private sector businesses have the incentive to improve efficiency, as they need to remain competitive. This can also promote an enterprising culture of risktaking and innovation.

• Disadvantages Of Privatisation

  • The process creates a private sector monopolist, which is not always a positive outcome for customers, who will face higher prices.

  • To protect the public interest, privatisation may still require government regulation and intervention.

  • There is a trade-off (opportunity cost) as state-owned enterprises can provide social benefits, such as education, housing, postal services and public transport.

Nationalisation

• Purchase Of Private Sector Assets By Government