... 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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...Published-17/01/2013] ABSTRACT Privatization in generic terms refers to the process of transfer of ownership, can be of both permanent or long term lease in nature, of a once upon a time state-owned or public owned property to individuals or groups that intend to utilize it for private benefits and run the entity with the aim of profit maximization. In other words, it is a route from public or state ownership to private players or a group. From the other point of view, it is a strategy that provides advantages to a few at the price of many. However, this is always subjected to the circumstances involved. In this paper, the aim is to understand the major advantages and disadvantages of privatization in this country. Index Terms: Privatisation, advantages, Public administration. I. INTRODUCTION Privatization is a managerial approach that has attracted the interest of many categories of peopleacademicians, politicians, government employees, players of the private sector, and public on the whole. As per the opinion by the subject experts, privatization can be advantageous in terms of the higher flexibility and scope of innovation it offers along with cost savings, many a times. However, other specialists defiantly debate that privatization has an adverse impact on the employee morale and generate fear of dislocation or termination. More likely it also adds on to the apprehensions pertaining to accountability and quality. Experts both advocate and criticize privatization making it more or less...
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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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...The Impact of Privatization of Public Services on the Public Sector Employment in the U.S. Literature review Privatization is one of the most discussed topics in the modern era of public management. Traditional norms of public management are getting unclear day by day because of the increased consideration for the efficiency and effectiveness of affairs of public sector organizations. One of the way governments adopted to increase the efficiency and effectiveness is the privatization of public services. Varner (2006) in his report titled ‘Government Privatization History, Example, and Issues’ given the definition of privatization as “Privatization is the process of transferring property from public ownership to private ownership and/or transferring the management of a service or activity from the government to the private sector”( Varner, 2006, p. 1). This paper assumes and proposes the privatization as independent variable and analyzes its impact on unemployment. So being an independent variable in a study it is very much appropriate to identify different aspects related to privatization. The significant contribution of Varner (2006) is that he has specified the forms of privatization as; “Complete Privatization, Privatization of Operations, Use of Contracts, Franchising, and Open Competition” (p. 1). In addition, he said that moves address the idea of reason what may be the causes ultimately ends up in privatizing the public entities. The provided list of seven reasons...
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...Privatization of Prisons Private Prison, Inc. Introduction America has been getting tougher on lawbreakers. This is something that the public long has been demanding. The problem it creates, however, is a shortage of prison capacity to hold the increased numbers of convicted criminals. This has led to: prison overcrowding, sometimes prompting court actions against penal systems; rapidly rising operational outlays; and taxpayer resistance to the cost of new prisons. A partial answer to the problems of prison overcrowding and high costs may be the "privatization" of prisons. Costs and overcrowding problems are the driving force behind the privatization phenomenon. As a national average, it costs roughly $20,000 per year to keep an inmate in prison. There are approximately 650,000 inmates in state and local prisons. This costs taxpayers an estimated $18 billion each year. More than two thirds of the states are facing serious overcrowding problems, and many are operating at least 50 percent over capacity. Cost comparisons between private and government operation of prisons show frequent cost savings under private management. While the national average cost to hold a prisoner in a government run prison is $40 per inmate a day, many privately run prisons charge the governments on average lower fees. U.S. Corrections Corporation (USCC), a private company headquartered in Louisville charges Kentucky charges a daily fee of $25 per inmate. In their first year of operation in...
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...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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...Published-17/01/2013] ABSTRACT Privatization in generic terms refers to the process of transfer of ownership, can be of both permanent or long term lease in nature, of a once upon a time state-owned or public owned property to individuals or groups that intend to utilize it for private benefits and run the entity with the aim of profit maximization. In other words, it is a route from public or state ownership to private players or a group. From the other point of view, it is a strategy that provides advantages to a few at the price of many. However, this is always subjected to the circumstances involved. In this paper, the aim is to understand the major advantages and disadvantages of privatization in this country. Index Terms: Privatisation, advantages, Public administration. I. INTRODUCTION Privatization is a managerial approach that has attracted the interest of many categories of peopleacademicians, politicians, government employees, players of the private sector, and public on the whole. As per the opinion by the subject experts, privatization can be advantageous in terms of the higher flexibility and scope of innovation it offers along with cost savings, many a times. However, other specialists defiantly debate that privatization has an adverse impact on the employee morale and generate fear of dislocation or termination. More likely it also adds on to the apprehensions pertaining to accountability and quality. Experts both advocate and criticize privatization making it more or less...
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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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...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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...electricity and port facilities fell on the colonial government due to the absence of indigenous companies with the required capital as well as the inability or unwillingness of foreign trading companies to embark on these capital-intensive projects(Iheme 1997).This involvement was expended and consolidated by the colonial welfare development plan (1946 – 56) that was formulated when the labour party came to power in the United Kingdom. This trend continued after independence such that by 1999, it was estimated that successive Nigeria Governments have invested up to 800 billion Naira in public owned enterprises (Obasanjo, 1999). THE CONCEPT OF PRIVATIZATION Although the concept of privatization is an is an emotive, ideological and controversial one evoking sharp political reactions, its political origins, meaning and objectives are not ambiguous. Iheme (1997).defines privatizations as: …any of a variety of measurers adopted by government to expose a public enterprise to competition or to bring in private ownership or control or management into a public enterprise and accordingly to reduce the usual weight of public ownership or control or management. However, in a strict sense, privatization means the transfer of the ownership (and all the incidence of ownership, including management) of a public enterprise to private investors. The later meaning has the advantage of helping one to draw a line between privatization and other varieties of public enterprise reform...
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...the Korean government seems to destruct the non-profit medical system and proceed to health care service provided by private entities instead of the government. It seems that it doesn’t bring negative effects,...
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...Privatization Trends in Government in the 1990's e University of Submitted to: Prof. Submitted by: D el 6 7 May PRIVATIZATION HAS BECOME INCREASINGLY ATTRACTIVE TO GOVERNMENTS AT ALL LEVELS BOTH IN THE UNITED STATES AND AROUND THE WORLD. PRIVATIZATION, HOWEVER, POSES A DIF~ERENT SET OF PROBLEMS FOR PUBLIC ADMINISTRATORS. THE GOAL OF PUBLIC ADMINISTRATOR IS TO RUN HIS/HER AGENCY AS EFFICIENTLY AS ) .' ''I ,J• . 1 , POSSIBLE. BUT IN TIMES OF FISCAL CONSTRAINlj PRIVATIZATION IS SEEN AS A SOLUTION TO BUDGETARY PROBLEMS. AS WITH ALL ISSUES THERE ARE TWO SIDES. PROPONENTS OF PRIVATIZATION FEEL THAT THE PRIVATE SECTOR CAN DELIVER THE SAME SERVICES THAT GOVERNMENT CURRENTLY PROVIDES FOR LESS MONEY, BETTER QUALITY AND WITH MORE VERSATILITY. ON THE OTHER HAND, OPPONENTS FEEL THAT PRIVATIZATION REDUCES THE QUALITY OF SERVICES, LEADS TO THE DESTRUCTION OF PUBLIC EMPLOYEE UNIONS AND CORRUPTION AND IN THE PROCESS WEAKENS GOVERNMENT J CONTROL OF THESE SERVICES THAT ARE CONSIDERED ESSENTIAL TO THE PUBLIC. THESE OPPONENTS FEEL THAT IF THE PRIVATE SECTOR COULD HAVE DONE THESE JOBS AT A REASONABLE COST IN THE FIRST PLACE GOVERNMENT WOULD NOT HAVE HAD TO PROVIDE THEM AT ALL. PROPONENTS FEEL IT IS THE FACT THAT GOVERNMENT HAS GOTTEN SO BIG THAT THEY CAN NO LONGER PROVIDE THE SERVICE AT A RATE LOWER THAN THEIR PRIVATE COUNTERPARTS AND THAT HAS GIVEN BIRTH TO A VARIETY OF PRIVATE CONTRACTORS WILLING TO PROVIDE THESE SERVICES AT MORE COMPETITIVE PRICES. GOVERNMENT HAS...
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...The Perils of Privatization The Perils of Privatization Initially, privatization allows governments to decouple from an unsustainable state-led economic model, which reduces fiscal pressures and provides space for entrepreneurial experimentation. But, from India to Brazil and Turkey, we have seen how several years of impressive economic expansion, under the guidance of market-oriented governments, has been followed by an explosion in public discontent over endemic corruption, macroeconomic uncertainty, and slowing growth -- signifying a major gap in the relationship between the state and markets. Among newly-emerging economies such as the Philippines, recent economic gains have largely failed to trickle down to the masses. In absence of real political parties, reforms have been more a function of the personal whims of the political leadership rather than a reflection of carefully-considered programmatic action. There has been hardly any policy consistency, with cyclical leadership change ushering in new policy directions -- undermining the positive legacy of the previous administration. True, the Aquino administration has managed to restore a measure of confidence in the economy, with more global investors taking notice of the country's massive economic potentials. And a legion of hard-working Filipinos around the world will continue to boost their national economy through tens of billions in annual remittances. Nevertheless, the long-term trajectory of the Philippine economy...
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...advantages and disadvantages of privatization and nationalization of industries or firms. The essay will conclude by suggesting which of the two would be viable for future policy consideration in Zambia. The term privatization is often loosely used to mean a number of related activities, including any expansion of the scope of private sector activity in an economy and the adoption by the public sector of efficiency enhancing techniques commonly employed by the private sector. The term privatization may be taken to mean a financial transaction-the sale of a publicly owned asset to the private sector or the transfer of the authority to make resource allocation decisions from the government to the market place (Gabel, 1987). While acknowledging that no definition of privatization is water tight, for the purpose of this essay, privatization will be defined as the transfer of productive asset ownership and control from the public to the private sector (Ibid). In Africa, many governments have embraced the idea of privatization, brought to the fore mainly as a part of the adjustment and stabilization programs of the mid-eighties and the nineties. Privatization now frequently features in government policy statements and in conditionalities from donors. The past decade has also seen the World Bank and other donors get increasingly involved in lending operations towards parastatal sector reforms that included privatization components (Landis, 2000). Privatization is therefore a capitalist...
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...private prisons. The term prison privatization commonly refers to the policy of contracting out the management and operation of prisons and jails to private, for-profit companies. Prison privatization is a controversial issue, with ongoing debate over the ethics of delegating the punishment function of the criminal justice system to private actors, weather private prisons cost less to operate than public facilities, and if the quality of security and conditions of confinement differ between public and private prisons. In 2005, approximately 200 private correctional facilities operated in the United States, housing a total of 107,000 inmates. Four companies provide more than 90 percent of private prison capacity. About 6 percent of all state inmates and 14 percent of federal inmates are incarcerated in privatized facilities. The idea of privatizing prisons emerged in the 1980s as a policy remedy to the problem of growing incarceration rates, severe prison overcrowding, and constraints on increasing government funding of new prison space. Public investment in new prisons climbed eightfold from the late 1970s to the early 1990s, but was at or approaching its limits in many jurisdictions due to voter rejection of construction bonds, statutory ceilings on state debt, or general taxpayer unwillingness to support increases in government spending. With privatization used as a way of reducing costs and increasing capacity in other areas of government...
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