Efficiency in management: Privatisation promotes efficiency in the management of most enterprises or industries.
Increase in revenue: More revenue will be generated for the government through privatisation.
Innovations: Innovations are injected into the production and rendering of high quality products and efiicient services to the people.
Competition: The system is open to individual and collective participation resulting to competition among emerging investors.
Consumers’ choice: Consumers have enough choice to make in the purchase of goods and services.
Disadvantages Of Privatisation
Profit maximization: This policy will lead to high cost of produced goods and services aimed essentially at profit maximization on the part of the producers.
The masses: Will experience low or poor standard of living and this is because most of the enterprises or companies would want to maximize their profits.
Reduction in labour force: Privatisation may bring about reduction in the work force or labour force of most companies, thereby increasing the already saturated labour market
Income not evenly distributed: Income is usually not evenly distributed as a result of this policy and this is because a few individuals (producers) are now in control of the means of production of goods and services.
Neglect in consumer’s welfare scheme: With privatization, people’s welfare scheme are not adequately catered for or implemented.
Strike or demonstration: Privatisation usually produces conflict between the employer (producer) and the workers especially in the area of workers total emolument. When dialogue between them fails strike becomes the inevitable tool for workers. Strike is the refusal to work.