Privatization is basically the process of transfer of ownership of a business from Public sector to the private sector. Privatization is as old as the ancient Greek and Roman civilizations.
Following are the affects of privatization on an economy:
- Results in improvement of functions.
- Reduction in corruption
- Accountability is strict in privatization
- Market disciplined companies in the economy
- Results in natural monopoly
- Profits are disbursed amongst various sectors of the economy.
- More profits are generated in an economy.
