Is privatization a Boon or a Bane?

Answer 1

Privatization can be good if it eliminates the need for government monetary contributions to a governmental entity. An example would be the privatization of the United States Postal Service in the 1970's. Privatization can be bad if it raises the cost of goods or services to a rate which the consumer cannot possibly afford. An example of this would be the privatization of Bolivian water treatment plants in this decade.