The document discusses privatization. It defines privatization as the transfer of a business or industry from public to private ownership. It lists reasons why governments pursue privatization, including reducing fiscal burdens and improving efficiency. It discusses the roles of governments in privatization and the advantages it can provide, such as improved infrastructure and services through private capital investment. The disadvantages of privatization are also acknowledged.

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PRIVATIZATION
A presentation by Al Minar Mahmudur Reza

2. C O N T E N T S
DEFINITION
of privatization
WHY
privatization?
ROLE
of Govt.
ADVANTAGES
& Disadvantages
I II III IV
Al Minar M. Reza

3. I
DEFINITION
of privatization
I
Al Minar M. Reza
privatization
/prʌɪvətʌɪˈzeɪʃ(ə)n/
the transfer of a business, industry, or service
from public to private ownership and control
The process in which a publicly-traded company is
taken over by a few people is also called privatization.
The stock of the company is no longer traded in the
stock market and the general public is barred from
holding stake in such a company. The company gives
up the name 'limited' and starts using 'private limited'
in its last name.

4. II
WHY
privatization?
I
Al Minar M. Reza
reasons to privatize
/prʌɪvətʌɪˈzeɪʃ(ə)n/
Governments take privatization stance to reduce its burden in terms of
underutilization of resources, over and redundant employment, fiscal
burden, financial crises, heavy losses and subsidies in order to improve
and strengthen competition, public finances, funding to infrastructure,
and quality and quantity of services in terms of management. Study
used a comprehensive approach to explore all the reasons of
privatization and categorising them based on past literature.
Categories formulated are accounting reasons, economic reasons, political reasons, social reasons,
motivation from public vs. private ownership differences and incentives of post privatization
performance. Moreover the role of government in post privatization arena has prime importance
without which the desired objectives can't be achieved. Based on the study it can be inferred that
it is not necessary that a country opt privatization based on all the reasons but surely pick one or
more from them. Post privatization performance of the previously SOEs is the prime motive behind
it. However economic reasons also take part in privatization with same magnitude.

5. III
ROLE
of government
in privatization
I
Al Minar M. Reza
roles of government
/prʌɪvətʌɪˈzeɪʃ(ə)n/
Governments take privatization stance to reduce its burden in terms of
underutilization of resources, over and redundant employment, fiscal
burden, financial crises, heavy losses and subsidies in order to improve
and strengthen competition, public finances, funding to infrastructure,
and quality and quantity of services in terms of management. Study
used a comprehensive approach to explore all the reasons of
privatization and categorising them based on past literature.
Categories formulated are accounting reasons, economic reasons, political reasons, social reasons,
motivation from public vs. private ownership differences and incentives of post privatization
performance. Moreover the role of government in post privatization arena has prime importance
without which the desired objectives can't be achieved. Based on the study it can be inferred that
it is not necessary that a country opt privatization based on all the reasons but surely pick one or
more from them. Post privatization performance of the previously SOEs is the prime motive behind
it. However economic reasons also take part in privatization with same magnitude.

6. IV
ADVANTAGES
of privatization?
I
Al Minar M. Reza
advantages
/prʌɪvətʌɪˈzeɪʃ(ə)n/
1. The improvement of infrastructure and delivery of
public services by the involvement of private capital and
expertise.
2. The reduction of the demand for government resources
and self reliability by independent companies.
3. The generation of additional government revenues by
receiving compensation for privatizations
4. The improvement of the regulation of the economy by
reducing conflicts between the public sector’s regulatory
and commercial functions.
5. The improvement of the efficiency of the Kenyan
economy by making it more responsive to market forces.
6. The broadening of the base of ownership in the Kenyan
economy; and the enhancement of the capital markets

7. IV
DISADVANTAGES
of privatization?
I
Al Minar M. Reza
disadvantages
/prʌɪvətʌɪˈzeɪʃ(ə)n/
1. The improvement of infrastructure and delivery of
public services by the involvement of private capital and
expertise.
2. The reduction of the demand for government resources
and self reliability by independent companies.
3. The generation of additional government revenues by
receiving compensation for privatizations
4. The improvement of the regulation of the economy by
reducing conflicts between the public sector’s regulatory
and commercial functions.
5. The improvement of the efficiency of the Kenyan
economy by making it more responsive to market forces.
6. The broadening of the base of ownership in the Kenyan
economy; and the enhancement of the capital markets

8. Al Minar M. Reza
Privatization in India is an important step towards strong growth of a country and good governance. With the pandemic, more
responsibility is retained with the government for taking the privatization process in the right direction and also captivating good outcomes. The
privatization process also enhances economic status.
Although public sector units ha;ve contributed to the development of the country, they have a lot of shortcomings. The process of privatization has both
pros and cons. Government should adopt complete and partial privatization, to enhance efficiency. But at the same time, social justice is equally
important and must not be ignored while introducing reforms.
CONCLUSION