The word “Privatization” is not a new word today. The history of Privatization emerged before the twentieth century. We all are well aware of the effect of Privatization. Privatization is a wide word and has a great impact in society. However, the result of Privatization is considered a boon for somebody whereas some consider it as a bane.
Ten Lines on Privatization in English
Here, we are presenting ten simple lines on Privatization in English in very easy language so that it would be helpful for you to understand this topic very quickly.
1) The term privatization was introduced by “The Economist” (international weekly newspaper) during the 1930s.
2) Privatization refers to the conversion of the public sector to the private sector.
3) The main purpose of privatization is to increase efficiency of the system.
4) The first massive privatization was occurred between 1933 to 1937 in Nazi Germany.
5) Privatization is a good source of income for Government.
6) Government can also privatize its policies or services.
7) Some examples of government services which can be privatized are water supply, revenue collection, transportation etc.
8) Privatization is associated with more skilled job opportunities.
9) Privatization may lead to a hike in prices (expensiveness).
10) Aim of Private bodies is to make more profit out of less cost.
1) Privatization increases productivity.
2) Privatization is importance for the development of the country.
3) Higher competition in the private market may result in job losses for some people.
4) Privatization of public bodies involves various rules and regulations.
6) Privatization helps in economic as well as financial growth of the country.
7) Privatization can reduce the burden of Government.
8) Public firms don't have any work pressure whereas private firms have to compete in the market.
9) Privatization deals with better product quality as consumer needs are their priority.
10) However, Privatization will reduce wages and benefits of the employees.
Privatization may be a good idea for developed countries, but in developing countries privatization can have adverse effects as it holds different classes of people. As a result of privatization in developing countries, Rich will become richer and the poor will remain as they are. The advantage of privatization will be enjoyed by the upper-class public. However, the middle and lower class has to face the consequences. Many countries across the world had gone through Privatization. In the 1950s, Great Britain Privatized their steel industry. Followed by Latin America in the 1980s, Europe in 1990, Japan in 2007 and so on. However, the effect of privatization is still a controversial topic in society.
FAQs: Frequently Asked Questions
Ans. India posses’ mixture of public and private contribution in the field of banking, transport, telecommunication, health care, etc.
Ans. Piyush Goyal (former railway minister) stated that Indian Railways will never be privatized. However, investment from private sector can be used to enhance the services of Railway.