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Privatization in UK - Assignment Example

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The UK has been on the first line of privatization and it has seen the highest number if privatization among its peer nations. The government has privatized many firms and even whole sectors such as the railways sector in the UK. In this paper, the efficacy of the UK privatization is the focus. …
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Privatization in UK
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Privatization in UK

Download file to see previous pages... This essay stresses that the privatized firms only seek to impress the shareholders and so their priorities are not to help the citizens but to help advance the interests of the public. This then goes against the theory that are there about how privatization helps the economy to do better to the advantage of the public. With public firms, the public can hold them accountable because they have the right to use democratic processes to determine how managers manage these firms. With the privatized firms however, this is not possible and their mangers run them the way their shareholders want.
This paper makes a conclusion that the benefits of privatization are not easy to achieve. Despite there being so many potential benefits for privatization in theory, these benefits do not materialize. This means either that the privatization process is not being benefiting from the right way of doing it or that the theoretical benefits of privatization do not have the possibility of materializing into real benefits that the public can feel at the macroeconomic level. This is especially when the public does not gain the benefits that are supposed to come from the privatization. It is clear that the supporters of the privatization of UK public organizations did not think the process well enough to have it implemented din a successful way. This means that it is necessary for the government to rethink the strategy and have a way to evaluate the current strategy and find if it is possible to make it even better. ...Download file to see next pagesRead More
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