...Privatization on Service Sector Preface We know that the countries which are developed today are getting very strong in service sector day by day. Without having a very significant service sector it is impossible to retain the development of the economy of a country. Service sector is the accelerator of an economy. And Bangladesh is one of the least developed countries of the world with a huge number of different problems but most importantly with an emerging service sector. Really this is a great tonic for this underdeveloped country on the way of development. So to utilize this potential setting up of a lot of service organization is needed. But the service organization should not be public rather private. Because we all know about the poor service quality and negative profit of the public service organizations of Bangladesh. So the privatization of service sector is one of our desired initiatives. It is one of the leading aspects with a very bright potential to boost-up the economy of this third-world poor country. Prepared by: Md. Abdul Hai – 07882860 Essence of Privatization Despite a significant degree of public ownership in health, education, communication, utilities and energy sectors in the pre-independence period, Bangladesh inherited basically a private sector dominated economy at the time of independence in 1971. A set of three inter-related reasons are put forward as rationale for privatization in Bangladesh. These are: • Improvement of the governments’ fiscal...
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...4.0 GOVERNMENT PRIVATIZATION POLICY; SUCCESS OR FAILURE? The implementation of Government Privatization Policy in Malaysia can be considered as success. This is because, this policy design able to achieved almost all the objective of government privatization policy. Therefore, our opinion about the government privatisation policy is success due to achievement of these objectives. 4.1 Relieve the financial and administrative burden of government The successful privatization should bring gain to the government in term of reduce financial burden of those entities that suffer losses .For example is Malaysia Airlines (MAS). According to Tun Dr Mahathir, MAS should be privatize since ten years ago due to loss of RM 10 billion in term of capital injection and government also did not received dividend during the 5 years to 1985. As we can see now days, there are so many problems facing by MAS. For instance the accident of MH370 and MH17 that make MAS become worse. In order MAS to success they need to reconstruct the management structure from top to bottom to make a better decision making and become more perform. Besides that, the privatization also undertaking and maintain services and infrastructure, for example according to the Privatization Master Plan Policy (PMP), proceeds from sale of government equity in privatize companies has generated RM1.88 billion, while the government is said to have saved more than RM8.2 billion in capital expenditure for infrastructure development...
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...Temple University Privatization of public services to reduce cost and improve quality has a long history. Peter Drucker, the Austrian born management professor, was the first to suggest contracting out of local services to private companies. Indeed many municipal services were already contracted out by 1980 in Great Britain. But the most significant drive for privatization in Great Britain, which signaled the way to the rest of the world, came about with the election of Margaret Thatcher in 1979. In the following decade a host of state owned enterprises were privatized including British Petroleum, British Aerospace, Jaguar, Rolls Royce, National Freight Corp., Cable and Wireless, British Airways, British Gas, British Telecom, several water and electric utilities. In addition, public housing was sold to the residents and compulsory competitive bidding of local services was initiated. By the late 1980’s, Mexico, Brazil, Chile, and Argentina elected presidents who adopted privatization initiatives. But the trend toward privatization was not confined to western countries. The collapse of Communism in the Soviet Bloc prompted the sale of many state owned enterprises as well as other forms of privatization. Even earlier, China in 1978 allowed private farming and later private sector manufacturing and retail operations. And Vietnam allowed private businesses and Cuba allowed homes to be sold to their tenants. Privatization of government activities in the...
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...OVERVIEW OF AVIATION PRIVATIZATION IN EUROPE, AFRICAN AND ASIAN COUNTRY PREPARED BY: NUR IZZAH IWANI BT IBRAHIM@ABD RAHMAN 2010554633 NURUL HARYANIE BT MISRAN 2010572197 WANDEE BT JAMIL 2010558697 GROUP : AC220 8B PREPARED FOR : ASSOCIATE PROFESSOR DR. ASMAH ABDUL AZIZ PERSONAL BIOGRAPHY NUR IZZAH IWANI BT IBRAHIM @ ABD. RAHMAN 2010554663 NURUL HARYANIE BT MISRAN 2010572197 WANDEE BT JAMIL 2010558697 Contents ABSTRACT 3 KEYWORDS 3 INTRODUCTION 4 OVERVIEW OF AVIATION PRIVATIZATION IN EUROPE, AFRICAN AND ASIAN COUNTRIES 5 Argentina – Its pitfall and the problems behind it 5 Turkey – A Privatization through BOT 7 Kenya Airways – A Successful Story 9 Malaysian Airlines Considering Privatization 10 Germany-Fully privatized and partially privatized 12 Privatization in United Kingdom 14 IMPLICATION OF PRIVATIZATION 16 RECOMMENDATIONS 17 REFERENCES 18 ABSTRACT This paper focuses on the privatization of airports in six different countries which are Argentina, Turkey, Germany, United Kingdom, Malaysia and Kenya. The analysis aims to highlight the objectives, implementation and the government rules towards privatization of airports. This paper also aims to identify to what degree privatization contributes to or enhances the performance of the airports. The study measures the change in any given indicator of performance whether the privatization on the airports...
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...State versus Private Ownership Andrei Shleifer Department of Economics Harvard University Cambridge, Massachusetts. Abstract Private ownership should generally be preferred to public ownership when the incentives to innovate and to contain costs must be strong. In essence, this is the case for capitalism over socialism, explaining the "dynamic vitality" of free enterprise. The great economists of the 1930s and 1940s failed to see the dangers of socialism in part because they focused on the role of prices under socialism and capitalism, and ignored the enormous importance of ownership as the source of capitalist incentives to innovate. Moreover, many of the concerns that private firms fail to address “social goals” can be addressed through government contracting and regulation, without resort to government ownership. The case for private provision only becomes stronger when competition between suppliers, reputational mechanisms, the possibility of provision by private not-for-profit firms, as well as political patronage and corruption, are brought into play. 1 What kinds of goods and services should be provided by government employees as opposed to private firms? Should government workers make steel and cars in government-owned factories? Should teachers and doctors be publicly employed or should they work for private schools and practices? Should garbage be picked up by civil servants or employees of private garbage haulers? Should the whole economy be "socialized"? Although...
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...Privatization: Administrative Process Privatization, to be successful and sustained, needs to be recognized as a legitimate action that will bring wide-spread benefits. There are many examples of privatizations that have been delayed for years, or simply abandoned, because they lacked political support or were considered to be proceeding in an unfair manner. In addition, around the world there are many examples of firms that have been privatized and then subsequently re-nationalized. Particularly in a regulated industry, such as infrastructure industries, there are also many ways, short of complete re-nationalization, to re-appropriate some of the value of a privatized company. The security of property rights and the credibility of regulatory contracts depends significantly on public notions of justice and fairness. Privatizations that involve selling assets at unreasonably low prices, to favored investors, for secret forms of side payments, undermine the legitimacy of the property rights that privatization attempts to create. Moreover, privatization often can play a key role in building private capital markets, which depend crucially on formal and informal rules, promises, trust, and investor confidence in shared understandings. Corrupt privatizations raise the cost of capital and hinder the development of capital markets. Privatization is most likely to be successful with active political leadership and initiative. These factors are apparent in the privatization of Kenya...
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...Impact of Privatization on Organization’s Performance Abstract The proposed research is intended to assess the impact of Privatization on Organization’s Performance. The main theme is to examine its impact on profitability, output, efficiency and employment. It will be analyzed to compare the performance of public and private sector organization in Pakistan. Keywords: Privatization, profitability, output, efficiency and employment Introduction Despite frequent changes in the governments since 1985, five regularly elected and six care takers, there has been consensus on the continuation of privatization policy and as such it is expected to be cornerstone of all the future government policies, at least in the near future. Instead of arguing the merits or demerits of the privatization policy, we explore its impact on the levels of efficiency. A large number of public sector units have already been divested and a number of other public enterprises including telecommunications and thermal power stations have been placed on the privatization list. Nevertheless, serious doubts have been expressed about transparency of the bidding process and the impact of privatization on efficiency, investment, production, prices, employment and fiscal deficit. Accordingly, there is a need to identify constraints in realizing various objectives of privatization with a view to suggesting concrete policy measures that may be taken to overcome the constrain and to improve...
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... 02 Privatization in Bangladesh: Problems and Prospects Muhammad Ruhul Amin( Showkat Ara Khanam(( Abstract: Privatization has been advocated in the development literatures as the gateway of the growth and development of the countries all around the world. Despite the phenomenal expansion of privatization programs, the results differed from country to country. Some could achieve the desired goals and some failed enormously. However, the World Bank and the IMF continued their campaign of privatization for less developed countries (LDCs) including Bangladesh to stimulate their growth and development. Some LDCs have adopted privatization programs of their own volition. The central theme of this paper is to examine the implications of privatization for the overall development of Bangladesh. The paper raises a number of issues in this regard. The issues involve meaning, significance, approaches, strategies and effectiveness of privatization. While seeking solutions to these issues, the problems inherent in policy formulation and its implementation strategies have been clearly spelled out in the paper. The authors suggest that in order to make privatization efforts a success, an indigenously designed pragmatic policy needs to be undertaken. They warn that the policy prescriptions of external sources including donor agencies, pressure groups and political lobbyists should be handled with great care and caution. 1. Introduction Privatization has been...
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...AN INSTITUTIONALIST STUDY ON THE PERFORMANCE MANAGEMENT SYSTEM IN A GOVERNMENT- LINKED ORGANISATION NORHAYATI BINTI MOHD ALWI UNIVERSITI SAINS MALAYSIA 2009 AN INSTITUTIONALIST STUDY ON THE PERFORMANCE MANAGEMENT SYSTEM IN A GOVERNMENT-LINKED ORGANISATION by NORHAYATI BINTI MOHD ALWI Thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy September 2009 ACKNOWLEDGEMENTS I am especially indebted to my supervisor, Dr. Siti Nabiha Abdul Khalid for her constant guidance, limitless support and patience throughout the period of my study. There is no way that I would be able to repay the kindness and caring that she has shown to me. I am thankful to Assoc. Professor Dr. Yuserrie, for giving valuable inputs to my study and also to others in the School of Management, who have helped me in some way or another. I would like to acknowledge the comments made by Professor Lee Parker and other participants of the Global Accounting and Organisational Change Conference, held in Melbourne, Australia in July 2008. A special thank you is also dedicated to Professor John Burns for the insightful comments on the research. I am also indebted to my employer International Islamic University Malaysia and the Ministry of Higher Education for providing the financial support. Thanks so much also to the respondents for their willingness to share some of their thoughts and experiences, which have made my data collection easier than I would ever...
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...The Meaning of Privatization Copyright 1988 by Paul Starr. Seite 1 Readers may redistribute this article to other individuals for noncommercial use, provided that the text and this notice remain intact. This article may not be resold, reprinted, or redistributed for compensation of any kind without prior written permission from the author. If you have any questions about permissions, please contact the author at (609) 258-4533 or by e-mail at starr@princeton.edu. Preferred Citation: Paul Starr, "The Meaning of Privatization," Yale Law and Policy Review 6 (1988): 6-41. This article also appears in Alfred Kahn and Sheila Kamerman, eds., Privatization and the Welfare State (Princeton University Press, 1989). The Meaning of Privatization Paul Starr Privatization is a fuzzy concept that evokes sharp political reactions. It covers a great range of ideas and policies, varying from the eminently reasonable to the wildly impractical. Yet however varied and at times unclear in its meaning, privatization has unambiguous political origins and objectives. It emerges from the countermovement against the growth of government in the West and represents the most serious conservative effort of our time to formulate a positive alternative. Privatization proposals do not aim merely to return services to their original location in the private sphere. Some proposals seek to create new kinds of market relations and promise results comparable or superior to conventional public programs. Hence...
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...Political Environment of Bangladesh: The political system of Bangladesh is followed by representative democracy. Despite being a democratic country the safeguards of democracy are not being exercised properly which have negative impact on business operation. Political unrest is almost a daily occurrence in Bangladesh which hinders the daily national and international trading system of the country. Foreign firms are feared to come in Bangladesh with FDI. Bangladesh is a democratic country in name but not in action. The following biased democracy safeguards are some of the main hindrances of international business in Bangladesh. Individual right to freedom of expression, opinion and organization are restricted. Media are more or less biased to the current government. There is more or less regular election sometimes major parties avoid election. There are often face to face clashes among the leading political parties. Despite being the court system is independent most of the times its functions are directed by current government. Corrupted political state bureaucracy Corrupted political police and armed force. This situation does not support entrepreneurship that’s why it can not make a man innovative. That’s why local business can not be strong. To be competitive in international business such political system and government is failing to make local business more efficient and more effective. That’s why Bangladesh is lagging behind in international...
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...Competition Scenario in Bangladesh (Draft) Prepared for CUTS-International Prepared By Bangladesh Enterprise Institute July 2005 B A N G L A D E S H E N T E R P R I S E I N S T I T U T E [ Table of Contents CHAPTER I INTRODUCTION ………………………. 1 I.1. Geographical Location ………………………. 2 I.2. Structure of GDP ………………………. 3 I.3. Economic policies ………………………. 4 A. Trade policy ………………………. 5 B. Industrial Policy ………………………. 6 C. Foreign Direct Investment Regime ………………………. 7 D. Privatization Policy ………………………. 8 E. Government Procurement Policy ………………………. 9 F. Labour Policy ………………………. 10 G. Competition Policy ………………………. 11 CHAPTER II NATURE OF MARKET/COMPETITION ………………………. 12 II.1 Agriculture ………………………. 13 II.2. Manufacturing ………………………. 14 II.2.1 Pharmaceutical Sector ………………………. 15 II.2.2 Toiletries Sector ………………………. 16 II.2.3 Tobacco Sector ………………………. 17 II.3 Financial Services ………………………. 18 II.4 Power ………………………. 19 II.5 Telecommunications ………………………. 20 II.6 Transportation ………………………. 21 II.7 Health Services ………………………. 22 CHAPTER III SECTORAL POLICIES ………………………. 23 III.1 Financial Services ………………………. 24 III.2 Power ………………………. 25 III.3 Telecommunications ………………………. 26 III.4 Transportation...
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...the conflict of interest the current system generates. Further, it will explore the advantage of privatising Medibank Private, including increasing competitiveness in the market and money generated for other social and economic projects. The Reserve Bank of Australia (1997:7) defines privatisation as the full or partial transfer of ownership of public assets to the private sector (Reserve Bank of Australia 1997). Privatisation gradually increased across the world in the 1980’s originating in Chile, the UK and New Zealand which was a ‘radical reversal’ of the ideology of state ownership (Heraclerous 1999). According to King (2003:2) privatisation began in Australia during the 1980’s with the deregulation of the financial sector and airlines and was accelerated in the 1990’s (King 2002). The first major company to be privatised in Australia was the Commonwealth Bank in 1991 through an IPO (Docherty 2014). Since then the...
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...throughout the former Soviet Union. To take part in all but the most basic private sector activities was illegal. All productive assets, including land, industrial enterprises, homes and farms were in theory owned by “the people” (Leonard, Watson, 2013). This statement essentially sums up how privatized firms would be met if de-privatization becomes law. Their investment firms would become illegal and they would have to explore other ways to work within the law or dissolve. If we explore free markets they would be Pareto efficient and would favor the young. However, it would hurt the politically charged groups from the old regime like government officials. (Brickley, Smith, Zimmerman, 2009). Mass privatization was an excellent solution to the problem that state ownership was omnipresent and domestic wealth holders were insufficient to buy the assets. The mass privatization strategy also facilitated an extremely speedy ownership change in most transition economies, as few countries had contained a private sector of any significance in 1990 (Leonard, Watson, 2013). This information makes de-privatization favorable in my opinion. While privatization seems excellent, it stifles future growth and limits opportunities for all. The process to transition should be gradual and well thought out. Privatized companies run a large risk of losing their business if a violation is made. Politicians and Soviet era managers have more to gain. Political motivation and corrupt managers...
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...Hello It’s a pleasure to write this essay.. Governments have to be more responsive to society’s needs and demands. Public-sector organisations are being reformed in order to provide better, faster and more services. The citizen/ customer has a prominent place in these reforms. For many years the topic of customer satisfaction has been on the European agenda and in recent years this has rapidly grown in importance. According to the DGs’ resolution of May 2006, the main focus of the common European work and efforts regarding customer satisfaction should be on the collection of best practices and the preparation of guidelines for questionnaires to measure customer satisfaction. During the Austrian (first half 2006), Finnish (second half 2006) and German (first half 2007) Presidencies of the EU, initiatives were taken to address these aspects. At the IPSG and Customer Satisfaction Expert Group meetings, ways were discussed to gather and present good practices and create guidelines. Based on these good practices, the Customer Satisfaction Expert Group meeting and the IPSG meeting concluded that many interesting and valuable things could be done with these good practices and that the field of customer satisfaction was too large and too important to narrow attention only to customer satisfaction surveys and measurement, and to limit guidelines in this sense. “Measuring” satisfaction is one thing; “managing” satisfaction is another and should be the aim. Based upon...
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