The document discusses the privatization of several British industries including British Airways, the water industry, British Petroleum, and electricity supply. It provides details on the reasons for privatization, the effects before and after privatization, and historical background. The key points are: 1) Industries like British Airways, water, and electricity were nationalized but privatized in the 1980s-1990s due to reasons like improving efficiency, raising money, and increasing productivity which had declined in nationalized industries. 2) Privatization led to initial rises in prices, profits, and executive pay but longer term impacts included increased investment, employment cuts, and varied effects on services and environmental standards depending on the industry.

1. PRIVATIZATION
Development Studies
Course Teacher : Muhammad Bilal Khalid

2. NED UNIVERSITY , KARACHI
Member:
•Ali Mohib
•Sajjad Mehdi
•Tehreem Siraj
•Taliya Salman
•Aruba Khan
•S.M. Ijlal Mehdi
•Hassan Zafar

4. CONTENTS
• What is privatization ?What is privatization ?
• Reasons for privatizationReasons for privatization
• Privatization in United Kingdom.Privatization in United Kingdom.
• British AirwaysBritish Airways
• Water IndustryWater Industry
• British petroleumBritish petroleum
• British electricityBritish electricity
• British prisonsBritish prisons

5. What is privatization ?
• Privatization is the opposite of
nationalism .
• The transfer of ownership of
property or businesses from a
government to a privately owned
entity.

6. • Raising money.
• Making industry more efficient.
• Spreading share ownership.
Reasons for Privatization

7. Privatization in United Kingdom

8. BRITISH AIRWAY

9. BRITISH AIRWAY
• A British Airways Board was established by
the United Kingdom government in 1972 to
manage the two nationalized airline
corporations.

10. REASONS BEHIND THE PRIVATIZATION OF
BRITISH AIRWAYS
 Acquisitions, mergers, cases, regulations, and
strikes.
 Aver-employment.
 Productivity was very low compared to its
competitors.
 Earnings of BA were declining.

11. BEFORE AND AFTER PRIVATIZATION
EFFECTS OF BRITISH AIRWAYS
PROFIBILITY:
 After privatization their profits boomed.

12. NUMBER OF EMPLOYEES
 salary increase due to privatization.
 After privatization it was increased by 31%

13. MARKET SHARES OF BA
 After the privatization of British Airways, market
share it improved by 0.50 %

15. WATER INDUSTRY
•In 1989 water system of U.K was privatized by the
Thatcher government

16. AFTER PRIVATIZATION EFFECTS OF
WATER INDUSTRY
•Prices increases 50% in the first 4 years
•Pre-tax profits doubled in the first year
of the privatization
•After privatization number of
employees decreased by 21.5%.
•The privatization lead to increase in
fees , salaries & bonuses

17. AFTER PRIVATIZATION EFFECTS OF
WATER INDUSTRY
•Instead of improving services and
investment , the reduction in staff lead to
deteriorating of rating services in many areas
•The water quality did not improve.
•Public health has deteriorated and the
pollution of environment has increased
•The water industry is no longer a public
service but only business to maximize profits.

18. BRITISH PETROLEUM:
Founded by william knox d`arcy in 1909
Established in 1954 by the government of UK
British petroleum privatized by the government in order to sold its entire
share to company by the prime minister of UK (mrs.Thatcher)
The government sold its entire share in several slices between 1979-1987)
This act of privatization was copied around the world and she the baroness
thatcher initiated the boom privatization as said by the minister of welfare
lord Freud who in an earlier as a banker at Sg Warburg.

19. 19
HISTORY OF BRITISH PETROLEUM
MRS.THATCHER(13-OCT-
1925---8-APR-2013)
 “Fundamental to improving britians
economic performance”
 YEAR OF PRIVATIZATION:
(1979-1987)

20. CEO AND CHAIRMAIN OF BP
BOB DUDLEY(CEO) CARL HENRIC SAVANBERG(CHAIRMAN

21. REVENUE:A states annual income from
which expenses are met
Operating income:us $6.412 billion(2014)
 profit : us $4.003 billion(2014)
Total assets:us $ 284.3 billion(2014)
total equity:us $ 112.6 billion(2014)
Total employes: 85,000

22. 07/31/16

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PRIVATE PRISONS
The 1st
privately run prison opened for
business on 6th
April 1992.
At present 14 private prisons out of 144 .
The top private companies are 4s justice
services , Serco Custodial services& sudeno.
12.9 % of prisoners population is in private
prisons.
Combined values of contracts is around £ 4
Billions .

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HISTORY OF PRIVATE PRISONS
 1980-1990 : Gathering momentum
 1990-1998 : Introducing competition
 .
 1998-2010 : Moving back & forth between
the public and private
 2010-present : Deeping and expandind
competition.

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MAIN FACTORS
The cost of private prison is less than the cost
of public prisons
The private prisons are safer , living condition
are good & successful rehabilition of
prisoners into the society
The government dependency on private
prisons should not be increased because it
leads to greater cost
To maintain & ensure the quality &
transparency government should keep check
and balance

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G4S PRISONS
First company to open and run a private prison
They force prisoners to work 40 hours per week
HMP Oakwood is biggest jail

27. The World Bank Group ▪ Finance, Private Sector, and Infrastructure
Network

28. THE RESTRUCTING AND
PRIVITIZATION OF THE U.K.
ELECTRICITY SUPPLY
The World Bank Group ▪ Finance, Private Sector, and Infrastructure
Network

29. Central Electrcity Generating Board (CEGB)
Before Privitization
•Playing monoply
•Low productivity growth
•Low return on Assets
•Very expensive Coal & Nuclear Power
•Emissions of Sulfur dioxide & Nitrogen oxides
causing acid Rain & Global warming
The World Bank Group ▪ Finance, Private Sector, and Infrastructure Network

30. AFTER PRIVITIZATION (1990)
AFTER SIX YEARS
•Labour productivity doubled
•Consumption of coal fell from 74 million ton to 30 million where as the
cosumption of gas increased from 1% to 20%
•Ban on Gas for creating electricity was lifted from EU
•Over all real unit cost fell by 50%
CEGB
National Power Power Gen Nuclear Electric
Thermal Generating Plant National Grid Nuclear Power
High-Voltage Transmission
Network
The World Bank Group ▪ Finance, Private Sector, and Infrastructure
Network

32. • Net benefits of the restruction & privatization
• Creates more nuclear programs
• Price of export rises
• Clean Enviroment
• Saves cost in Restructuring
The World Bank Group ▪ Finance, Private Sector, and Infrastructure Network

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