* Getting the timing right for privatisation is hard to gauge. Has government exhausted all other alternatives previously? * Do we have the relevant institutional environment in place?: private property rights protection, rule-of-law, hard budget constraints, competition and regulation * Is privatisation a short run or long run solution? Debts are paid off but the loss of revenue streams for the future is a major risk… * De-centralization of PSE’s activities and responsibilities to local institutions and grass-root organizations can reduce inefficiency and mismanagement associated with central government. This diminishes the dominance government and private agencies would have over the wider society in developing countries. * Resistance to privatisation, by society, due to hike in prices. * Would you really get an increase in revenue if you cut out the working class? Would the middle & upper classes begin to utilize the services? * If government privatizes in any industry that is invaluable (transport board, hospital etc.) with few competitors, the rise in their prices would cause other competitors to raise their prices as well, thereby further hurting the consumers. * Before considering privatising public sector enterprises, efforts should be made to improve their performance level via managerial and efficiency reforms. In its true form, this is a rarely attempted alternative (Whitfield, 1992: 4). * Public sector reform should seek to change the structure, culture and attitude of the entire sector, brought about by implementing a vision for the sector and the overall methodology for reaching their goals. * Eg. Office of Public Sector Reform * In a functioning democracy, ‘efficiency is not worth more than the basic rights of citizens’ (Peters, 1996: 89). Privatisation could increase efficiency greatly, but at the cost of citizen access to services previously provided by the state. * Government must be bold and proactive to make the hard choice to seek long term benefits by reforming the public sector, so that the country can see the benefits in the future.