Does privatization improve management controls and enhance enterprise performance to facilitate development goals? (original) (raw)

Poole Jr. et.al defined privatization as the shift of responsibility either in full or partial capacity for a function. In its general sense the term privatization implies for the transfer of control and ownership of any economically active entity to the private sector from the public sector. Sanera, et.al ( 2009) showed that privatization can take four forms which are competitive sourcing, partnership, contracting and sale of assets. It depends mostly on the objective behind the privatization that which of these forms a government or state authority will prefer to apply in privatization. In many cases the privatization were referred as denationalization. The reasons to favor privatization were visited in detail by Shirley, et.al (1992)where she listed reasons for any government to go for privatization. According to her, government’s should privatize as it will improve - the use of public resources - the operating efficiency - the dynamic efficiency Shirley et.al (1992) also defined how the government’s should privatize state run enterprises. Per her guidelines states need to create that conducive environment for the privatization, streamline the process for it and be ready to be interacted by the enterprise once it is privatized. On this basic context, our paper is titled “Does privatization improve management controls and enhance enterprise performance to facilitate development goals?”.