Frequently Asked Questions
Have a question? check these answers.
Experience worldwide has shown that public enterprises have failed to live up to expectations. They tend to consume a large proportion of national resources without discharging the responsibilities thrust upon them. More importantly, they fail to share out these resources efficiently. One only needs to review the level of coverage of the National Electricity Power.
There are, of course, no guarantees but privatisation can be an important element for increasing the workforce in the long term. If private management functions on an efficient and profitable basis, it should be expected that its business would increase over time as a result of higher production and lower product cost.
The government must devise sectoral policies that introduce competition and promote private sector development. It must establish and maintain a strong regulatory framework for the remaining monopolies, public and private, to ensure that fair business practices are adhered to, keep prices down, and generally oversee the particular sector;
Indeed, with new investments in the privatized enterprises, better resource allocation, operational efficiencies, and better corporate governance are likely to pave the way for expansion and job creation. These improvements in turn will bring about better working conditions, higher pay and more sustainable employment in the long run. Nonetheless, the impact of privatisation on employment
The sale of public enterprises would reduce the level of employment in the short-run, because of the elimination of excess labour. Unemployment, however, is expected to decrease in the medium- and long-run as the rate of growth of the economy increases along with the growth of the private sector.
Privatisation is not an end in itself, but it is a key tool for improving the efficient allocation of resources, for mobilizing investment, and for stimulating private sector development. It is expected to bring about the following benefits: Reduce corruption and parasitic mentality; Infuse capital and modernize technology in our industries,
