In this article we will discuss What is Privatization? What is the impact of privatization on bureaucracy? Negative or Positive, Advantages & Disadvantages of Privatization?, Privation and Nationalization in Pakistan
Privatization is the making of state departments public sector organization / state owned enterprises by replacing bureaucracy with private managers. Privatization focused on efficiency, cost efficiency and improved management.
Privatization has reduced the interference of both the politicians and bureaucrats. But this arguments sets only in developed nations not in developing states like Pakistan and India. Here, privatization is a short term treatment and a long term disease. Every new government cures the economic deficit by privatize its public assets.
Another impact of privatization on public administration (bureaucracy) is that state manages the state affairs especially execution related affairs through state officials (bureaucrats). Hence the less or non-interference of state in state owned enterprises may be a bigger challenge in the near future.
Advantages of Privatization:
1. Efficiency
2. Competition
3. Better management
4. Non-interference of politics and bureaucracy
5. Enhance productivity
6. Financial improvement
7. More customer-care
8. Achievement based earning
9. Flexibility
Disadvantages of Privatization:
1. Not accountable before state
2. Increase wages
3. Self-interest above national interest
4. Increase price
5. Private monopoly
6. Employee concerns
7. Non-democratic
8. Divided administration
9. Huge debt stock
10. Evasion of taxpayer money
11. Short term remedy and long-term consequences
Nationalization process in Pakistan started by Zulfiqar Ali Bhutto (PPP) and privatization process was started by Nawaz Sharif (PMLN) & PM Shaukat Aziz (President Pervez Musharraf).
(This topic also important for Political Science)