The transfer of an industry or organization from the public sector to the private sector is called privatization. In the process of privatization, the monopoly of the government in an industry or business can be ended and that industry or business can be carried on by private individuals or companies. eg. Telephone Service, Petrol Pump, Postal Service, Doordarshan, Insurance, D.Ed, B.Ed, Medical, Engineering Colleges were earlier only government owned. After privatization, private services were launched parallel to them.
Every subject has two sides, the same goes for this subject. Let us look at the advantages and disadvantages of privatization. Benefits of Privatization- 1) In the government sector all the threads of an industry or business are not in the hands of a single person, so he has to go through many processes while taking decisions, hence it is a waste of time. In such cases, privatization is beneficial.
2) Privatization increases competition and improves service quality. For example, BSNL was the only government company in the mobile sector, SIM cards were not available for 2 years. On arrival, private companies, SIM cards started getting on footpaths, as well as the call rates are also less than the government rates.
3) Most of the government employees are lazy, they are not afraid of their superiors because many seniors are also lazy, so there is no responsibility for the work, so public works are not completed. You have to pay a bribe to get the job done. In the private sector, it is controlled to a great extent so the speed of work increases and production increases or the speed and quality of service improves.
4) No government work is done immediately because it does not matter to the workers whether money comes or not. For example, government offices are closed at 5 pm, while private shops remain open till 10 pm.
5) The quality of government services is very poor as compared to the services provided by private companies. Such as services in government hospitals and in private hospitals there is a huge difference.
The drawback of privatization-
1) Public services are for the welfare of the people, whose purpose is not to earn profit, but to provide good services to the general public. For example, the work which costs thousands of rupees in private hospitals, the same work is done in government hospitals for Rs.10. In a passenger train, a common man can travel 100 km in Rs.25. There are many concessions in health and, rail and air travel for senior citizens. After privatization, the common man has to wash his hands all this.
2) With the employer having all the rights of employee selection and appointment, priority is given to relatives and known persons, leaving behind poor but quality persons.
3) In government jobs, there is job security to a great extent. Facility like regular dearness allowance, salary increment, compassionate benefits are available. In the private sector, the company may suffer losses, the company may be closed or due to the slightest negligence of the employee, he may have to lose his job.
4) Privatization limits the role of the government to a director rather than a controller.
5) The country may develop economically, but there is no guarantee of inclusive growth. The hesitation of the government reduces the contribution of the public sector in the development process of the country, due to which the economy of the country leans towards capitalism.
Solutions to Privatization-
There are some measures to avoid the disadvantages of privatization.
1) Medicines, grains and other essential goods and services should be exempted from tax.
2) Strict laws should be made to bring discipline among the government employees. Those who break the discipline should have a provision for strict punishment.
3) The price of the product of all private companies should be fixed by the government. And the fee for private health and other services should be fixed by the government. There should be a limit on the percentage of profits.
4) Those who do corruption and bribery in the government account should be punished severely.
5) Government employees should not be paid monthly but on the basis of direct work.
6) Just like tenders are issued for government work and work is given to those with low budget, in the same way, those who work for less salary by taking out tenders of jobs should be given a job.
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