What are the benefits of Privatisation?
28 Aug What are the benefits of Privatisation?
Posted at 08:46h
in
by peepaadmin
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POLICY FOCUS – Governments delivers well because it focuses on its
core mandate of strategic policy direction and implementation.
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LESS RISK – Lessened Financial and Administrative burden on
government therefore money can be channeled to other national needs
such as education, health and poverty eradication programmes -Very
minimal reliance on government.
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SERVICE DELIVERY – Improved service delivery in the public service
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REVENUE – More tax income from operations that were generic cost-centers! More FDI in-flows in cases of IPOs and SEPs
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IMPROVED EFFICIENCY – Empowered citizens – decision-making hierarchies
shortened as the long institutionalised consultations would be cut to
more cost-effective and result-focused models.
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Strengthens the role of the private sector in the economy.
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Private companies are profit oriented and Government is not,
therefore the scenario will breed business battles for improved
services.
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Very key to innovative ideas.
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COMPETITION – Discourages monopolies – BTC will have to compete with e.g Mascom and Orange – value for money for customers.
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Opportunity for Batswana to entrepreneurship through ESOPs and MBOs –
citizen entrepreneurship will grow. Batswana entrepreneurs will now be
able to operate more meaningful businesses that touch their communities
timely; stimulated by competition and less dependent on government to
improve sectors!
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OUT-SOURCING: Citizens will enjoy localisation by home-bred businesses
that may compete amongst themselves, thus improving service levels
across sectors such as in out-sourced activities. Activities such as
cleaning services, gardening and security for government will be owned
by citizen companies.