Advantages and disadvantages of privatization, commercialization and deregulation.
Advantages of privatization
It brings improvement and innovation
It brings healthy competition
Leads to efficiency
Improves supervision of work
Improved working condition
Eagerness and positive attitude to work is enhanced in the workforce.
Reducing the burden of decision- making imposed on government
Disadvantages of privatization
It can lead to inflation
It brings about inter- company conflict
Results in lack of transparency
Wealth will be concentrated in the hands of few private individuals and will not be available for public benefit.
Unemployment and poverty due to downsizing and forced retirement.
Fragmentation of industries.
There is the problem of regulating private monopolies
Short termism of firms
It could lead to cuts in essential service especially to the less privileged
Exploitation of workers by the private firms involved.
Exploitation of consumers.
Advantages of commercialization
It enhances efficiency through higher target setting
Makes the workers more resourceful leading to better operation
It helps to upgrade MIS( Management Information System)of the affected sector of economy.
It reduces government expenditure
Increases the level of profit
Disadvantages of commercialization
It may result in inflation
It could lead to industrial strike/ unrest, as money earned from commercialization is not often well utilized for public benefit.
Deprives the citizens from benefiting from those services which were originally welfare services.
Advantages of deregulation
Elimination of scarcity
It breaks monopoly and improves competition
Creativity and innovation is enhanced
Increases employment opportunities
INCREASES THE SUPPLY OF THE COMMODITIES
Disadvantages of deregulation
Increase in price and undue exploitation due to subsidy removal
It leads to income inequality as the rich become richer at the expense of the poor.
Mention 5 advantages of privatization
List three disadvantages of commercialization
How does deregulation improve the nation’s economy?
Sub-Topic 2: Problems Associated with the Economic Reform Measures in Nigeria
POVERTY – all the economic reform measures in Nigeria tend to favour the rich who have what it takes to buy shares and get involved in the business areas opened up. Wider gap is created between the rich and the poor , making the rich richer and the poor poorer.
LACK OF AWARENESS DUE TO ILLITERACY AND IGNORANCE– the problem of illiteracy makes it very difficult to explain to or convince majority of the populace of the need for these economic reform measures.
LACK OF EFFICACIOUS LABOUR LAW TO PROTECT NIGERIAN WORKERS IN PRIVATE ORGANIZATIONS
IMPLEMENTATION OF PROBLEMS
Mention two problems associated with the economic reform measures in Nigeria
The advantages of privatization include all but one of these (a) Efficiency (b) accountability (c) improved working condition (d) promotion of idleness
One of these is a disadvantage of privatization (a) Downsizing and forceful retirement (b) improved working condition (c) healthy competition (d) efficiency
The problems associated with economic reform measures in Nigeria include _____ and _____ (a) Food and subsidy (b) problem of illiteracy and poverty (c) commercialization and deregulation (d) literacy and enlightenment
Write short note on how poverty affects the economic reform measures in Nigeria.