Saturday, 30 July 2022

Use of “Privatization”: A Socioeconomic Point of View | Chapter 8 | Current Aspects in Business, Economics and Finance Vol. 2

 

The main objectives of privatization are to improve the financial health of the public sector, strengthen the role of the private sector in job creation, and provide free resources for use in public-interest sectors like education, security, health, housing, transportation, and other infrastructure development initiatives. Production efficiency increases also contribute to faster economic growth and development. Globalization has led to a significant increase in the prevalence of privatization. Privatizations carried out with the intention of reducing the deficit and paying off debts could provide a fictitious sense of temporary prosperity. However, the primary objectives of privatizations are gradually moving toward secondary goals, with the majority of privatizations attempting to reduce the public financial deficit. Through hurried and improper privatizations, societies suffer significant long-term losses when institutions that were built up over time with public monies and have historical and social relevance for nations are transferred to the private sector. In order to address the public financial deficit, privatizations escalated in our country in the 1980s. However, at this time, debts mounted even more, effective institutions were destroyed, and public losses became apparent. The majority of public-private partnership ventures, which should be viewed as a kind of privatization, have cost the general public significantly more than their true costs. As a result, when the privatizations were taken in their entirety, the public suffered more losses than gains.

Author(s) Details:

Abdullah Murat Tuncer,
Department of Political Science, Conley American University, Honolulu, USA.

Please see the link here:
https://stm.bookpi.org/CABEF-V2/article/view/7644

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