Governmental Services Privatized Essay

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Privatization of Governmental Services

Privatization of government services

There has been a growing trend towards the privatization of governmental services in the world today. Privatization of government services refers to the handing over of public functions to companies that are privately owned. This paper will examine some of the benefits and detriments of privatization. I will give my position on the topic and give reasons why I take this position.

Benefits of privatization

The privatization of government services is beneficial in various ways. The government is not capable of providing all services to all its citizens. This is because the government might lack some expertise that is necessary to perform different functions. Most of the private companies have all the relevant expertise required to effectively provide various services to the public. This means privatization of government services will provide an opportunity to private companies to use their resources and tools in order to effectively provide services to the public. These are particularly services that the government can not provide due to the required expertise (Nichols, 2010).

Private companies are also quite productive hence reducing the costs incurred by the government.

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Through privatization, the government makes savings on the services they could be offering to the public but are now offered by private companies. Private companies have a profit incentive and hence they work towards cutting costs and becoming more efficient. The main interest of private companies is profit generation. Therefore they strive hard to cut down their costs as much as possible. Due to privatization, many companies such as British Airways have been able to improve on their efficiency and increased their profitability. Privatization will lead to a reduction of the size of the This is because the government would no longer require many people to work for them since they have privatized the services they were offering. The government does not have resources in place to deal with the emerging and changing needs. The private sector on the other hand is up-to-date hen it comes to technology required to satisfy the changing and emerging needs. With privatization, the private companies are able to cope with these changes in the needs of the public. Privatization also mans that there will not be nay political interference when it comes….....

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