Monday, July 16, 2012

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 Should the public sector be privatized?(group discussion [GD])   ?


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Hello friends, this is Vinoth from Chennai.

According to my point of view the public sectors should not be privatized. Because if it is done then it restled into huge bad effects and few good effects.

First of all I would say some bad effects.

1. Public sectors only to manage highly economic organizations like railways, oil corporations, postal departments, etc. If it would be in private hands then They not provide that high cost.

2. The private sectors only motivating the profit policies. So it could be resulted in hike in price.

3. Public sectors will give subsidies to poor peoples for managed the hike of price. But privates would not give.




These are the bad effects on my point of view.

Good effects are few only.

1. Corruption is stopped.

2. Talented employees only working in this organizations.

I would think these are the good.

I would conclude with public sectors should privatized if the good effects of not privatized are reformed.




  We know that there are so many problems in public sector. There is corruption at its peak. People are fed up with the bureaucracy. The benefits for the poor is not reaching. Leakages in the distribution system is at its extreme and we are seeing privatization of all non-performing PSUs (Public Sector Units) as a sure shot remedy to all those ailing problems.

However, privatization is not going to solve these problems. And, even if, it did, other problems of private sector will arise like, money driven-profit making approach, huge margins and high job insecurity. Also, privatization of public would make those important and crucial sectors unpredictable and unstable. Privatization of the public sectors will ruin the very purpose, why the government has been holding on to these sectors, which is human welfare..

What needs to be done is, that there should be a public private partnership (PPP) and government share should be no less than 51% so that it can take any decision. Also, FDI in these sectors should be allowed so that new technology could make a way to these sectors. Also, in those sectors where a private interference may not be feasible like defense, government database management, etc, we can appoint a monitoring body with stringent punitive laws to govern and monitor the proper functioning of those departments. In some sectors like, railways, roads construction, etc we could have both public and private companies working so that there is fair amount of competition. Banking sector, Mutual Funds and Insurance sector are some excellent examples.

At the end, I would like to conclude that we don't need to completely privatize the public sector. Rather, we need to open the gates for the private companies to work together with public sector.

1 comments:

  1. Hello friends the topic is pretty quite good. I had some perspective and points on about the topic both for against and support.

    AGAINST:

    According to my point of view the public sector should not be privatized for following reason. I agree that public sector yields lower output as compared to private sector but what I think is that government emphasizes more on about human and social welfare as well whereas this scenario is not similar in case of privatized sector as their ultimate aim is to yield more and more profit they primarily focus on increasing the marginal rate so as to yield maximum profit. They had no time for thinking about the human welfare. So instead of converting the public sector to privatized sector we could adopt the strategies policy rules which the private sector follows for increasing the efficiency. If public sector got privatized then rich person will become more richer and richer and the poor ones will come on the road.

    SUPPORT:

    Yes the public sector must be transformed into the private sector on account of the following consideration. The public sector doesn't not having stringent policy and laws etc which ultimately leads to the corruption 2g case scam is an example for this. The employee are irresponsible and their ultimate motto is just to have their salaries eventually and they are devoid of motivational factors as well there doesn't exist strong relationship and bonding between the employee which ultimately seizes their interest towards their works. Whereas when it comes to private sector they are manifested with stringent policy rules which are to be followed and if the employee doesn't give their best there maybe chances of getting fired. So taking all this into the consideration its necessary that public sector must be privatized.

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