Privatization refers to the policy of transferring assets and activities of public sector to the private sectors to be owned and operated by individuals. Privatization is one of the results of Structural Adjustment Programs which has been emphasized by the International Monetary Fund (IMF), (World Bank (WB) and donors from abroad, particularly Western countries like British, France, USA, Denmark, and Germany. The advantages of privatization inlcudes;-
1. Privatization has increased flexibility due to the reduction of bureaucratic complexity and procedures in order to improve the national economy.
2. Privatization has increased efficiency in provision of goods and services due to the competitive spirit in production.
3. Privatization has led to the improvement and rise of competition among the existing organizations, hence brought about better services.
4. Privatization has met the demands beyond the current government capacity. The private sectors encourage competitions which increase the level of productivity and efficiency.
5. Privatization provides clients with more choice of options where they can be more satisfied in terms of contracts, salaries and work conditions.
Disadvantages of Privatization