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Privatisation - Coggle Diagram
Privatisation
Why privatise
organisations are badly run in the public sector - they can become inefficient and yet the government may still finance them
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shareholders provide a better method of control over managers' activities than the Government (leads to better decision making)
leads to competition and gives more incitive to innovate and improve productivity - could improve the service offered to customers and lead to lower prices and better quality products
organisations are often run for political ends in the public sector - this allows inefficiency and so the private sector may be more efficient
cuts public spending - the government does not have to subsidise, and so by selling assets the Government can raise revenue
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the main aim is to increase competition and, as a result, improve efficiency, to lower prices, encourage innovation and improve the quality of products