Proceedings of the 8th International Conference on Research in Management and Economics
Year: 2023
DOI:
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An analysis of the disadvantages of privatisation
Majid Salim
ABSTRACT:
This paper argues that privatisation does not and cannot replicate the quality of investment a state makes in public services. It is argued that the state guarantees the intangible value of its citizens, whereas a private company can only work for shareholder profit motive, due to the way private companies are legally organised. Politicians often repeat the mantra that ‘privatisation creates efficiency’, but in stark contrast to this is the evidence that privatisation fails the public – evidence which is ubiquitous. As such, it is argued that common sense thought and circumspection are required.
keywords: Privatisation, macroeconomics, intangible value, private sector