Public versus Private

Running head : Privatization of public programs

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Table of Contents Page

Introduction . 3

Advantages and disadvantages of privatizing public administration . 3

Pros . 4

Cons . 5

Conclusion . 7

Reference . 8

Introduction

International monetary fund commonly known as IMF and World Bank has in the recent past been pushing its clients or countries to privatize some of the public administration , an issue which has led to heated debates on the effect that such a move would have on the

countries ' economies as well as the global economy . Privatization is seen as a means of improving public services . People proposing for privatization claim that such a move would increase employees ' productivity , save tax and reduce government 's expenditure . While some countries have already undertaken initiatives towards privatization of public administration , others feel that such a move would be detrimental to their economies as well as their citizens (Howe , n . d

Privatization refers to the handing over of public sector of administration to the private sector by the government . Privatization may be complete where a government sells off a public agency or partial through contracting with the private sector . Different reasons have been put forward explaining the reasons as to why privatization should or should not be encouraged . One of the advantages of privatization is that it reduces monopolization thus encouraging fair competition . It may also lead to efficiency by firms and hence higher economic growth . However privatization of some public programs such as social and health amenities may lead...