Mada za sehemu hiiGlobalizationMada 4
Privatization refers to the policy of transferring assets and activities of public sector to the private sectors to be owned and operated by individuals.
- To create more market oriented economy where those privatized firms will participate in the stock market.
- To improve economy, productivity and efficiency of the privatized parastatals.
- To secure and enhance access to foreign markets, capital and technology through attracting managerial and technological foreign investors.
- To broaden and share ownership through the equal provision of public services at all levels by individuals and the state.
- To reduce the overwhelming and challenging increase of the public debt. This is done by collecting tax from the private investors and use part of the tax to service the foreign debt.
- To preserve the goal of self –reliance.
- To improve the operational efficiency of enterprises and their contribution to the national economy.
- To reduce the burden of parastatal enterprises to depend on the government budget.
- To expand the role of the private sector in the economy and permit the government to concentrate on social services like health, education infrastructures.
- To encourage wider participation in ownership of private companies and management of business.
- It has increased flexibility due to the reduction of bureaucratic complexity and procedures in order to improve the national economy.
- It has increased efficiency in provision of goods and services due to the competitive spirit in production.
- Privatization has led to the improvement and rise of competition among the existing organizations, hence brought about better services.
- It has met the demands beyond the current government capacity. The private sectors encourage competitions, which increase the level of productivity and efficiency.
- Privatization provides clients with more choice of options where they can be more satisfied in terms of contracts, salaries and work conditions.
- Privatization has increased unemployment of the indigenous people. This has been the case because most of the personnel are from outside. When any public enterprise is privatized, it is accompanied by massive redundancy of the previously local working personnel.
- It has led to the fall in agricultural sector due to the withdrawal of the government from providing the agricultural incentives. It has increased temptation to reduce quality of services in order to reduce costs and maximize profit.
- Privatization increases the rate of moral erosion due to its policy of free trade. The private companies tend to import all types of goods without considering the consumers. Such goods include phonographs and other related firms or VCD/DVD, which ruin the younger generation morally.
- Privatization policy increases the rate of poverty to the people living in rural areas due to the decline in agricultural production. Rural people depend on agriculture for the better quality of their life.
- Trade liberation Trade liberation refers to the reduction of the tariffs and trade barriers to permit more foreign competition and foreign investment in the economy. It is a term which describes the complete or partial elimination of trade barriers such as quotas and tariffs. Trade liberalization is sometimes refers to as free trade.
- Free trade is the unhindered flow of goods and services between countries, and is a name given to economic policies and parties supporting increase in such trade. It is a market model in which trade in goods and services between or within countries flow unhindered by government –imposed restrictions. Restrictions to trade include taxes and tariffs, and other non-tariff barriers, such as legislation and quotas.
- Trade of goods without taxes (including tariffs) or trade barriers (e.g., quotas on imports or subsides for producers).
- Trade in services without taxes or other trade barriers.
- The absence of trade-distorting policies (such as taxes, subsidies, regulations or laws) that give some firms, households or factors of production an advantage over others.
- Free access to markets.
- Free access to market information.
- Inability of firms to distort markets through government – imposed monopoly or oligopoly power.
- The free movement of labor between and within countries.
- The free movement of capital between and within countries.
- Free and fair political competition: There is peaceful, free and fair competition between parties for the right to control the government.
- Tolerance: This is the ability to bear with something unpleasant or annoying. This means a society composed of different ethnics, racial and religious group. In this society, Africans form the majority, compared with the negligible non-African minority groups.
- Citizen Participation: participation is the major role of citizen in a democracy. It is both their right and duty. Citizenship participation includes standing for elections, debating issues, voting on elections, gathering for community meetings, joining parties and organization, protecting and ways of life of the minorities.
- Equality: in a democracy, all people are equal. This means people are valued equally. They have equal opportunities. No one is discriminated against.
- Accountability: In a democracy, elected and appointed officials ought to be accountable to the people. They must make decisions and perform their duties according to the wishes of the people, not for their own interest.
- Smooth transfer of power: in democracy, there is a well-established and transparent system of transferring power from one political party to another.
- Control of power abuse: In a democracy, elected and public officials are prevented from misusing their powers. The most common form of power misuse is corruption. This occurs when officials use public funds for their own benefit, accept bribes in order to render services, or exercise power illegally.
- Inclusion of a bill of rights in the constitution: A bill of right is a list of rights and freedom guaranteed to all citizens in country. Many democracies include a bill of right because it limits the power of government with good intention. It may also impose obligations to individuals and organizations.
- The rule of law: in a democracy, no one is above the law, not even an elected president. It means everyone must obey the law. If they violate it they must be held accountable or liable. Similarly, the laws must be equally, fairly and consistently enforced.
- Sovereignty: Sovereignty means the freedom to decide and execute domestic and foreign policies without interference from another country.
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