There are all kind of measures taken by the society to ensure progressiveness of the economy which is basis of the concept of the privatisation. An economy system that involves the government of a country granting private individuals ownership of companies, corporations, enterprise e.t.c. There are many reasons for the introduction of privatisation compared to the vintage system that involves governmental ownership of public utilities, though it depends on the system/form of government in which a country operates, the first among various reasons for privatisation is effective and efficient management of corporations.
We are all aware of how difficult it becomes for government to oversee the affairs of the country, now imagine the control, management and ownership of all kind of corporations and distribution of goods and services in a country to be in the hand of the government. I mean the difference in the infrastructure of public sectors and private sectors in the society tells you all you need to know about how most government owned enterprise are mismanaged. It is impossible for the government to oversee every affairs In a country without lapses, in order to cover up lapses, which involves ensuring productiveness of corporations and effective management, ownership privileges is granted to private individuals or groups.
Another one is, its brings about innovative ideas in the society, it is no doubt that most government owned corporations are still far behind when it comes to how far some private owned enterprise has gone. Most of the innovative ideas integrated into the government owned institutions are learnt from private groups or individuals who are well financed in their endeavours to bring about the best services to their respective customers. Allowing different kind of private individuals to own companies, most especially public utilities such as electricity gives room for innovative ideas.
The most profitable reason for privatisation is that its generates revenue for the government. More private owner of companies brings more taxes to the government which is used to develop the infrastructure of a state and improve the people's Standard of living, I mean it is how it is meant to be in a country that is immune to corruption. It definitely sounds like a win - win situation for both private individuals that are grated ownership rights of companies in a state and the government that grants such privileges. Especially if the services offered by the private entities are the category of services that are tantamount to the people's survive. Meaning services people can't do without like electricity, pipe borne water, postal service e.t.c
In a case whereby private individuals are granted the ownership of roads and other citizens have to pay before making use of it, it is definitely a day I don't pray to see. I mean in some countries there is private ownership of water corporations, electricity e.t c but roads being owned by private corporations, isn't that a little bit extreme. From my own perspective it is the highest peak of capitalism that seems unrealistic and illogical. It doesn't need much thought to imagine how chaotic it will be, with the whole concept of privatisation there are still lot of visible disadvantages, so when we start privatising public utilities such as roads, it is like a government seeking its own ruin.
Firstly, One of the critics of capitalism is the fear of the control of a state being in the hands of the wealthy, owners of leading corporation, multinational organisations e.t.c which means the control of government will be in the hands of few individuals to use as they please. I mean if private individuals can own roads, they can decide who has the right to make use of it or not, they can increase the cost of usage to make sure only the wealthy will have access to it, which will be a source of oppression on the masses. Even in a capitalist system ownership of roads is not a thing and yet the system is problematic to an extent, now imagine the inclusion of ownership of roads it will definitely be a disaster.
This kind of system, what does it have to say about humanity? Wouldn't it be the end of the less privileged? Another issue of privatisation is maximisation of profits which is also applicable to extreme measures of privatisation. When private individuals and corporations start owning roads, water e.t.c they would only see people as a means of making profit, instead of seeing people as those in need of their services. Especially if the services happens to be the type they can't do without in a day, e.g major roads, these private individuals can decide to increase the cost of usage to increase their profit to the maximum level, we would have no choice but to pay. One thing is for sure a system like this will end up leading to a revolution, civil war or all manners of method the people can rely on to bring down the private individuals who they now consider as their oppressors.
This write-up was inspired by weekly featured content titled "Private industry" in hive learners community.
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