Privatization appears to offer many benefits, including the possibility of reduced costs, better service and less bureaucracy. But these benefits can only be achieved under certain conditions. Here is what you need to know about privatization, the pros and cons and how it is sometimes possible to make it work.
He notes that, in large and fast-growing cities, it is difficult for governments to keep up with the demand for services, which has increased because of demographic changes in population, income growth and a desire to preserve existing programs, the latter a larger problem than one might expect.
Maintaining current services depends on the individuals who are charged with providing the services, and many of those individuals have fallen down on the job. Savas cites several examples in which city employees were running up costs and not completing jobs quickly enough because they were taking too many breaks or otherwise wasting time.
For example, in one city, bus drivers were being paid for 14 hours of work when they drove for four hours each morning, took a four-hour midday break and drove four more hours each afternoon at overtime pay of time-and-a-half. The book, however, does not point to privatization as a panacea.
Pros include offering a yardstick for comparing costs; limiting the size of government in terms of the number of employees; and creating opportunities for entrepreneurs.
Arguments against subcontracting include corrupt practices in awarding contracts; layoffs of government workers; and the cost of managing the contract. He also lists methods of privatization — contracts, franchises and deregulation — and the advantages and disadvantages of each.
Savas also includes several guidelines for government officials who are looking to privatize; and steps to establishing open competition through requests for proposals. Before-and-after case studies compare different services in cities and counties, the number of contracts, the estimated savings and productivity gains.
The case studies are basically success stories involving privatization and public-private partnerships. Like any political move, privatization has its sources of opposition, and it is important for governments to consider the big picture before proceeding with an action that likely will change their entire operations.In the United States, Social Security is the commonly used term for the federal Old-Age, Survivors, and Disability Insurance (OASDI) program and is administered by the Social Security Administration.
The original Social Security Act was signed into law by President Franklin Roosevelt in , and the current version of the Act, as amended, encompasses several social welfare and social. The background and pro and con arguments were written by benjaminpohle.com staff based upon input from the following footnotes (directly referenced) and sources (used for .
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I have examined in this paper the pros and cons of privatization, the decision to handover whole or part of a public enterprise or service to private ownership, including the core efficiency arguments used to justify private ownership of assets and services, and the merits and demerits of such a populist benjaminpohle.com: Privatization appears to offer many benefits, including the possibility of reduced costs, better service and less bureaucracy.
But these benefits can only be achieved under certain conditions. Here is what you need to know about privatization, the pros and cons and how it is sometimes possible to make it work. Virginia's ONLY syndicated political talk radio show!. LISTEN TO SHOW ARCHIVES HERE, SEE STATION LINEUP, and MORE Share this page with others via email, Facebook, Twitter, and more.
Oct 10, · The pros and cons of Privatization Having explained the meaning of privatization, evidence of how it works, its types and techniques, it is imperative to also look at the pros and cons (merits and demerits) on the economies of Russia, Vietnam and China- the countries in focus by this presentation. Find the latest business news on Wall Street, jobs and the economy, the housing market, personal finance and money investments and much more on ABC News. Oct 10, · Privatization can be accomplished by sale or lease. It can be accomplished by the government selling % of an enterprise, or selling 51%, or even by selling a minority stake - so long as the private sector is given full managerial control.
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