500 Words Essay on Impact of Privatization
When we say privatization, a lot of things come to one’s mind. They are both positive and negative. It basically refers to the shift of control from the public sector to that of private. The first world countries brought this concept first after which the developing nations caught on the trend.
In other words, it mainly aims to enhance the conditions of the services which people get. In addition, it also lowers the burden of the government by taking over certain industries. Privatization has no doubt made quite an impact on the world. Like there are two sides to a coin, over here also comes with benefits as well as drawbacks.
Benefits of Privatization
Privatization has created quite a positive impact on the world. Firstly, it has reduced government debts. Similarly, it has lessened the burden of the government. Furthermore, the quality of services has enhanced by a great margin. As there is increasing competition in the private sector, everyone is competing to give their best.
Moreover, there are now new products that are entering the market on a daily basis to help people get innovative goods. This helps in mixing creativity with private making and it also benefits the consumers greatly. In addition to that, political interference in various sectors has stopped which is a great sigh of relief.
Most importantly, the scenario of rates has increased. Due to the ever-growing competition in the industry, everyone is trying to make the most out of their goods. In order to do that, they offer competitive rates so that everyone can benefit. This brings profits to consumers as well as business owners.
Drawbacks of Privatization
While privatization has numerous benefits, it also has a fair amount of drawbacks. The first one being the drop in quality of goods as they mainly aim to make a profit. When people have this intention, they have little or no care about the benefit of the customers, so just to gain maximum profit, they compromise the quality and opt for unfair means.
In addition, there is also the drawback of the rise in prices. As the private owners usually have a monopoly, they take advantage and charge high prices knowing very well that consumers will have no choice left but to do so. Similarly, this also gives rise to the rise in corruption. There are more and more cases of bribery, fraud, and others on a daily basis.
Moreover, transparency levels also drop due to this. In the public sector, people get a clearer picture than in the private sector. As they are not obligated to transparency, they often deceive the consumers. Other than that, privatization has also caused uncertainty amongst the consumers.
As there are more and more options being added to the market every day, the same product is sold at different forms and prices. This just leads to confusion and difference in quality. Thus, we see how it has both positive as well as negative sides. Consumers need to be more careful and not be fooled.
Some FAQs on Privatization
Q.1 How did privatization benefit us?
A.1 Privatization has a lot of benefits. It reduced the government’s debts, improved the services and also helped in introducing innovative products. Moreover, it also stopped any political interference plus brought competitive rates.
Q.2 What are the drawbacks of privatization?
A.2 Privatization also has some major drawbacks. Its main aim is to make a profit with little care to consumer wellness. There was also a price rise plus corruption rise after privatization. Moreover, it also created a lack of transparency and ambiguity in society.