Privatization Is a Process That Is Frequently Research Paper

Privatization is a process that is frequently met in countries with developed market competition. It is used by governments in order to transfer some of the state owned assets or services to private investors. The process of privatization has its advantages and its disadvantages.

In my opinion the process of privatization should be viewed from extreme points-of-view. In other words, we should not view privatization as either good or bad. I think some business sectors should be privatized (Investopedia, 2013). This is the case of the telecommunications industry. If such industries are privatized, numerous providers and sellers will enter the market. The increased competition in such industries determines lower prices and more options for buyers. However, other sectors, like healthcare should not be privatized. This is because in such cases the government would not have any control on healthcare. Social security issues must be managed by the state.

The process of privatization seems like a good idea in most cases. In an article posted in the Financial Post, the author discusses the situation of Canada, where the state owns liquor retailing business, telecommunications, gamin and lottery units, electric utilities, insurances, and others (Financial Post, 2013).The issue in this case is not that these state owned enterprises are not profitable. The issue is that they are not profitable enough. Different analyses have revealed the fact that if privatized, these businesses can increase their profits. However, this does not seem to be a good enough reason for the Canadian government to privatize them. In my opinion, such businesses should be privatized because they could increase their profits, which means the income taxes collected by the government are likely to increase.

In addition to this, privatization can determine job losses. This is the case of UK, where the privatization of the coal and steel industries has impoverished important regions of the country. However, this does not mean that these industries should not have been privatized. This means that the government should have….....