Question

Explain the criteria which should be employed to asses a privatization programme.

Answer 1

Privatization means transfer of public works or programs to private sector. In many countries, government transfer certain public programs such as infrastructure development, healthcare and education to private institutions or companies. It has brought in cost and quality efficiency in US and many other countries. The criteria for successful privatization program are financial worth of the potential bidders for public programs, establishment of an independent monitoring agency, periodic analysis of the outcomes of a privatization program. Before handing over a public scheme or works to a private agency, it is quite essential to assess the financial soundness of the bidders. Then government should proceed with selection of a successful bidder for privatization program. Next important thing is establishment of a regulatory body that will oversee the progress and expected outcomes of various privatization programs. There may be various parameters for judging benefits or outcomes of a particular privatization program for example education program. The main objective of an education program is to impart education to poor, marginalized and aboriginal population in a country. Therefore,if a privatized education program is expected to fulfill this broad state objective, it can be said as successful privatization scheme.

Third and most importantly, there must be creative and innovative ideas in any healthcare, education or other schemes of government that are being run by private agencies. Innovation in any public or private or government aided program brings qualitative as well as cost efficiency. Moreover, it also generates revenues for the state exchequers. The air force privatization in US has been quite successful. In this program, US Air force entrusted construction of lease apartments for the air force families to private housing firms. It also allowed private firms to build energy facilities at military establishments. Engaging private firms in many works by Air force helped the organization in saving precious money.