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Privatization & Economic Growth in Developing Countries by Paul Cook and Uichiro Uchida - Book Report/Review Example

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Privatization & Economic Growth in Developing Countries by Paul Cook and Uichiro Uchida

The authors argue citing different sources that the privatization of government services such as communication becomes more efficient as publicly owned companies are more likely to be capital constrained due to the lack of investors . There is much to agree with the privatization of companies in the developing world as the benefits outweigh the negative impacts that could proceed out such ventures. Although privatization is agreeable to the majority as whole such government procedures largely ignore minority populations who either cannot cope with the problems brought forth by privatization and henceforth brings them to become even more further marginalized in their own society. Privatization does bring forth economic growth but it also provides a negative outlook for small and medium enterprises which are unable to cope with the aggressive competition by the bigger companies thus either eliminating SMEs or limiting them to a smaller number and if proper regulatory systems are not implemented will in turn become large scale monopolization. Another problem with rapid economic growth is that there are larger wealth gaps between the richer classes and the poorer classes. In conclusion, although there are negative effects of economic growth and the marginalization of certain people within the economy as a whole (at times homemakers who’s work is not counted as GDP) but developing countries need privatization to pull in investors to pour money into the country to improve the quality of life

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Summary

The article, ‘Privatization and Economic Growth in Developing Countries’ were aimed at the many possibilities that rises out of the privatization of certain government services in developing countries and how it could steer the wider developing country’s economy to be more efficient and stabilized…
Privatization & Economic Growth in Developing Countries by Paul Cook and Uichiro Uchida
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