Benefits of the Privatization process to the Government

  1. Reduction in government expenditure – Government ceases to have the obligation of subsidizing losses made by the corporations
  2. Increased efficiency – This is because privatized firms are subject to completion
  3. Avoidance of political interference – No room for appoint of unqualified managers on political grounds
  4. Attract foreign investors
  5. Increased foreign exchange earnings
  6. Allowance for wider participation
  7. Increased innovativeness – carry out research into better methods of production, organization and marketing
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