Merit and demerit of privatization

Answer 1

Advantages:

- productivity per person is increased.

- Accuracy in terms of time and quality would increase.

- Only capable / fittest persons would be employed.

- Prices depend upon the monopoly & understanding between rivals .

- Profits soar and owners get maximum benefit.

Disadvantages:

- Labour is hit in the belly more work and least pay would be the policy.

- Prices would be higher than in public sector.

- To gain more profits sub standard items would be manufactured by all the private owners with a good understanding among themselves.

- The reliability of continuous service is questionable.

Answer 2

Some of the merits include better management, cutting down on costs and effective service delivery. The demerits include higher costs to consumers, lack of accountability, and lack of public participation.