#170: State vs Private
2008 will be the year of grand privatization projects. The president spoke several times in favor of privatizing big state-owned companies (electricity, heating, gas, power plants, telecommunications, etc.). The parliament under tight grip of his party will approve all the necessary laws.
I am for privatization. But, I have several problems with it. Its proponents are arguing that private owners will modernize these companies, make them profitable, and basically run them better than the government is now doing. However, private ownerships is not a panacea. State-owned companies can easily be ran like modern companies if you good management is recruited.
Nonetheless, I am more worried about the privatization process. Under these conditions, these companies might be sold to companies, who give the biggest kickback to government officials in charge of the privatization process.
1 comment:
Rarely can public companies run as efficiently as private companies. Even if they do not they still should be privatized. Under what right should the government own these diverse industries-telecom, gas, electricity? Is it to raise revenue? Or kick back favors to their favors?
Basically, the government must focus and specialize in keeping order with police, maintaining law with honest judges and defending the country with army. These are essential functions of government in my opinion.
The only worry here is if the privatization process will be transparent , as you mentioned, and open to all.
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