Privatization has been an issue if much debate during this presidential election. In particular, privatization as it relates to social security reform has been the primary focus. The purpose of this discussion is the provide arguments for privatization and against privatization. The discussion will also cite situations and examples both in America and abroad as to why or why not privatization is a good idea, and why it may or may not work. Let us begin our discussion by defining privatization.
Privatization is defined as the altering of a public enterprise into a private enterprise (Scott). According to a book entitled Privatization and Economic Performance, Privatization is designed to "improve industry performance by increasing the role of market forces." (Bishop et al.) In many cases, privatization comes about after there is a problem in maintaining the financing of the public enterprise. Such is the case with the issue of social security in the United States.
Arguments for privatization
There are many reasons that are often presented as to why privatization is important and essential. According to a book, entitled Privatization and Capital Market Development: Strategies to Promote Economic Growth privatization can be extremely beneficial to a country because it relieves the government of certain obligations. (Ciobanu and McLindon)
Once the government is free of this obligation, they can focus on the fundamental responsibilities of government. (Ciobanu and McLindon) The authors explain that privatization "enables a government to shift its portfolio of interventions out of areas of the economy in which the private sector is able to operate more efficiently and productively." (Ciobanu and McLindon)
The book also explains that the main purpose of government is to for the adequate investment in its citizenry (Ciobanu and McLindon). The authors contend that when the government attempts to take on more responsibility than it can handle, the results can be more harmful than helpful (Ciobanu and McLindon). In addition, the book asserts that as a governments resources decrease and demands of the population increase governments cannot afford to ignore the benefits that privatization can provide (Ciobanu and McLindon).
Proponents of privatization also contend that several factors contribute to the need for and success of privatization in different nations. The authors of the book Privatization and Economic Performance contend that there are three solid reasons for privatization. The book describes these reasons as finance, information and control (Bishop et al.). The…… [Read More]
Privatization of Healthcare Services in China Since 1980s
Empirical Analysis related to Primary level Changes
Data Presentation, Observations and Analysis
Obstacles faced by Private Clinics
China opened its door to the outside world and introduced economic reforms in 1980 with a shift from a controlled central economy to an open and market oriented economy. This project takes on the task of investigating the Chinese privatization of healthcare sector with special emphasis on private clinics and the role they play in overall healthcare industry. Driven by need of times this rapid evolution of private sector influenced the whole industry and gave birth to many problems occurring at both rural and urban areas. The thesis also gives a comparison of services and performance of players in the healthcare industry with focus on practices exercised in urban areas with further inquiry in to level of services provided by the privatized clinics, customer preferences and efficiency of overall privatization process with implementation of new healthcare reforms.
Creating a public private mix in the healthcare industry has been a major challenge for leadership of China; its healthcare system once dominated by only public institutions has now seen major changes since 1980 with emergence of a private sector not yet fully developed. Private clinics provide an alternate solution to the problem of increasing population which resulted in overcrowded public hospitals and preference for quality with increased awareness about health issues in general masses. The research investigates the problems faced by all three stakeholders (patient, public and private healthcare institutions) in light of privatization policy of Chinese government. This rapid privatization of healthcare industry gave birth to many problems related to traditional Chinese methodologies for providing medical care and effectiveness of public hospitals in the local setting. In implementing the new reforms Chinese state needs to ensure the continuation of quality health services through existing public healthcare institutions while regulating the private sector effectively.
There have been many health reforms all over the world especially during the past two decades, these reforms were in shape of privatization of healthcare sector. Some advanced economies of the western world changed…… [Read More]
Privatization is a process that is frequently met in countries with developed market competition. It is used by governments in order to transfer some of the state owned assets or services to private investors. The process of privatization has its advantages and its disadvantages.
In my opinion the process of privatization should be viewed from extreme points-of-view. In other words, we should not view privatization as either good or bad. I think some business sectors should be privatized (Investopedia, 2013). This is the case of the telecommunications industry. If such industries are privatized, numerous providers and sellers will enter the market. The increased competition in such industries determines lower prices and more options for buyers. However, other sectors, like healthcare should not be privatized. This is because in such cases the government would not have any control on healthcare. Social security issues must be managed by the state.
The process of privatization seems like a good idea in most cases. In an article posted in the Financial Post, the author discusses the situation of Canada, where the state owns liquor retailing business, telecommunications, gamin and lottery units, electric utilities, insurances, and others (Financial Post, 2013). The issue in this case is not that these state owned enterprises are not profitable. The issue is that they are not profitable enough. Different analyses have revealed the fact that if privatized, these businesses can increase their profits. However, this does not seem to be a good enough reason for the Canadian government to privatize them. In my opinion, such businesses should be privatized because they could increase their profits, which means the income taxes collected by the government are likely to increase.
In addition to this, privatization can determine job losses. This is the case of UK, where the privatization of the coal…… [Read More]
Four years later, the average federal drug sentence for African-Americans was 49% higher." (Vagins and McCurdy, 2006) Additionally stated by Vagins and McCurdy is: "In 2000 there were more African-American men in prison and jails than there were in higher education, leading scholars to conclude that our crime policies are a major contributor to the disruption of the African-American family. The effects of mandatory minimums not only contribute to these disproportionately higher incarceration rates, but also separate fathers from families, separate mothers with sentences for minor possession crimes from their children, create massive disenfranchisement of those with felony convictions, and prohibit previously incarcerated people from receiving some social services for the betterment of their families. In short, this policy is a failed policy in that the goal of this law was to target high-level drug traffickers but in reality, mandatory penalties for crack cocaine offenses "apply most often to offenders who are low-level participants in the drug trade." (Vagins and McCurdy, 2006) Sentencing Commission data has revealed that "73% of crack defendants have only low-level involvement in drug activity, such as street-level dealers, couriers, or lookouts." (Vagins and McCurdy, 2006)
II. CURRENT PROBLEM
The current problem at issue is the perceived 'right' of the Judge presiding over crack offense case sentencing to depart from mandatory minimum sentencing on crack cocaine offenses. This issue is presently before the U.S. Supreme Court. The work of Schwartzol (2006) entitled: "Rocks and Powder: Will Congress Listen to the Courts and Fix Drug Sentencing?" states that: "In federal court, crack offenses generate sentences 100 times greater than comparable powder-cocaine crimes. In other words, while it takes 500 grams of cocaine to trigger a five-year mandatory minimum sentence, 5 grams of crack earns the same punishment. Federal judges have long blasted the 100-to-1 ratio for punishing street-corner crack peddlers more harshly than major powder traffickers. But the biggest judicial gripe has been that the disproportionate penalties treat African-Americans unfairly. Blacks account for 80 to 90% of defendants convicted…… [Read More]
This study seeks to examine and determine the role of the government agencies in the situation of Nigerian telecommunications limited which is on the verge of collapse. The company has great infrastructure and the market has a lot of opportunities that can sustain several players yet it has been unable to sustain itself and has instead incurred debts amounting to millions of dollars. The purpose of this research is to explore if privatization of Nigerian telecommunications (NITEL) would or can facilitate the country to triumph over these difficulties. Findings from the study reveals that the issues affecting the company are many including its lack of profit, in ability to pay its staff and other debts.
The recent deregulation of the mobile phone market in Nigeria has led to the entrants of new players in the telecommunication market. The market was predominantly dominated by the government owned NITEL through a monopoly that has now recently ended. The number of telecommunication services users in Nigeria has also grown in large numbers. Telecommunication has obvious as well as important role to play in enhancing economic growth in the Nigeria. The Nigerian telecommunication market is regulated by the Nigerian Communications Commission which oversees the business on behalf of the government (Information gatekeepers, Inc., 1990).
However, to achieve the desired growth the telecommunication infrastructure also requires to be developed. The tools used for communication such as telephones, personal computers and the internet have shown to have critical role in the growth of the economies through enhancing individual growth and economic development. The Federal Government of Nigeria has recently put in place commendable policies that have facilitated some of the changes that have been experienced in the telecommunications market. The objective of these policies…… [Read More]
Watts (2003) reported about the need to establish a public-private jail system, wherein both the government and private sectors will oversee the management of jails, specifically in the case of cities and counties in the Southwest region. The report, however, also relayed the problem that may arise when such a practice will be enacted more prevalently. There is a possibility that because a partnership is forged between the private and public sectors, accountability would solely still rest on the government, with the construction and establishment of facilities committed only initially by the private sector. This means that over time, private contractors, after earning its profits from the contract, could possibly "disappear" and leave management and service provision duties to the government again, resulting to an ineffective partnership and a more inefficient jail management system (14).
Williamson (2003) echoed Watts's concerns in the eventual development of a partnership between private contractors and the government in the establishment of new jail systems. However, the present situation of the criminal justice system services calls for this kind of partnership urgently, and although no immediate remedies have been created to deter the eventual disadvantages of the practice, the privatization of jails and prisons are deemed, at present, the best solution to ensure that inmates are continually receiving social services from the government.… [Read More]
Privatization in Nigeria
The objective of this chapter is to present background to the research on Privatization and Organizational Performance in Nigeria, research problems research questions, purpose of the study and research proposition. Furthermore, the significance of the problem and justification for the study are also presented alongside with methodology approach. The literature was well reviewed so as to identify gaps and a discussion on the theoretical framework was also looked into. Finally, the finding and discussion came alongside with the conclusion.
There is a natural cycle that takes place in a developing country. It begins with revolution and starts a journey through poverty. From there, the country rebuilds and redefines itself. Some countries make decisions that ultimately reroute the overall economic course to one of success while others make decisions that keep the country in poverty and allow others to prey on the resources and citizens. In most cases, the public service is always linked to the economic and socio-political advancement of such countries (World Bank, 1997) as an aftermath of the weakness of the private sector. Inclusive, researchers has concluded that a poor structure of economic performance and corruption in Africa can be integrated with bad development macroeconomics regulation, political unethical rules, bad governance and the lack of good democracy (Mutahaba 1989; Therkilsen 2001). In Nigeria, a country with a history of religious and tribal tension, the steps are finally being taken to grow and expand business and offer the country some stability for the future. This case study will discuss the current status of privatization and organizational performance within Nigeria. The significance of this research is to assert what must happen in order for the private sector of the company to grow. To start off, primarily leads…… [Read More]
Privatization is the use of the private sector in government management and delivery of public services. Contracting out services predates the Constitution. In fact, in the early nineteenth century, some "inherently" governmental functions such as tax collection, mail delivery, and spying were performed by private contractors. Throughout the twentieth century, the government has continued to rely on contractors.
The Clinton administration, under the 1998 Federal Activities Reform Act, required federal agencies to identify jobs considered commercial in nature that could be contracted out to the private sector. As a result of the agencies findings, the white house office of management and Budget instructed all federal agencies to open identified positions to competition with the private sector. Recently, the Bush administration has identified as many as 850,000 federal jobs that could be performed by the private sector.
Does privatization affect you? Privatization is important because it helps the government achieve savings, improve efficiency and maximize effectiveness. The General Accounting Office has determined that competition for these positions could save taxpayers as much as thirty percent on each contract. The improvement will not only reduce costs, but will improve service to the Federal Government and you, the taxpayer.
I am currently employed by a government contractor that provides accounting services to governmental and not-for-profit organizations. I chose to write about privatization because my career path may be affected by the outcome of this research. We will begin with a review of related literature on the topic of privatization. Within the literature review we will explore the advantages and disadvantages of privatization. Our discussion will then focus on the methodologies that were used to acquire the research. We will also discuss the findings of our investigation and discuss the implications of the research.
According to research published in Foreign Policy, privatization is an economic issue as well as a political issue.
Privatization is defined as "any process aimed at shifting functions and responsibilities, in whole or in part, from the government to the private sector." ("Terms Related to Privatization Activities and Processes")…… [Read More]
Privatization -- a Comparison of Two Studies
A Comparison of Two Studies
The author of this paper is asked to offer a review and analysis of two major studies that both pertain to corporate privatization. The author is asked to break down the analysis into eight major categories. Those areas, in order, are epistemology (how relevant/correct the method is for the study relative to what is being studied), the associated literature reviews, the methods employed overall, the data analysis underpinning the results for each study, the interpretation of the results for each study, the overall readability of each study's summary, the relevance of the conclusions reached, and the contribution of the research to the overall body of knowledge as parlayed by the two studies.
The overall approach of the Craig/Amernic study is to focus on the senior management discourse of companies that take the privatization route. The study notes that a narrative perspective is adopted and the results/review of the study are stated in accounting-type language. There is perhaps a danger in not sticking to verifiable and provable figures, but the overall method employed for this study was solid. There is a huge qualitative dimension to this subject and that has to be recognized. A modicum of academic prowess is maintained via the use of accounting-based language because this is a set of jargon and terminology that many professionals reading this study will understand implicitly due to the shared knowledge set and culture of the accounting industry around the world (Craig & Amernic, 2008).
The methodology behind the Yonnedi article was much more quantitative in nature because a standardized questionnaire was used. For that reason alone, any conclusions drawn will generally have much more weight and validity because qualitative analysis can be very subject to bias and preconceived notions and that can cloud and pollute the efficacy and validity of any results offered, even if the conclusions happen to be the right ones (Yonnedi, 2010).
Literature Review & Research Question Connection
The Craig/Amernic report has an extensive section that covers prior theory and research. The study goes so far as to offer a breakdown of certain trends and terms starting on page 1094 of the treatise. Example topics include operating ratio/adjusted operating ratio, compensation and benefit…… [Read More]
Privatization of Social Security
A number of things have been happening to give Americans the idea that the social security system in this country is about to collapse.
For one, with rising affluence, birth rates fall. This would not be a problem except that advances in medicine and better preventative care is also extending the American lifespan. Formerly, there were very few senior citizens as a fraction of the American population; a lot of people lived to see their 65th birthday, fewer lived to 75, and hardly any into their 90s. Now, however, the proportions are upside down; very few people are being born and those who are living much longer. The pyramid is becoming inverted.
This spells trouble for Social Security because it means that in the long run there are going to be fewer and fewer people paying into the Social Security system and more and more receiving payments from it. Even were there no other reasons to worry about the system, this trend alone will inevitably result in the system running an annual deficit, simply untenable over the long run.
However, this is not the only problem facing the social security system right now.
Another egregious problem is the government's practice of dipping into payroll taxes designated for social security to fund other projects. If a senator from Wisconsin would like to fund a museum in Beloit, then almost all he need do is write a check; the money will be withdrawn from the social security fund. We should rename it the Social Slush System instead of the Social Security System. The money itself is far from secure!
Every candidate for federal office lists "social security reform" somewhere on his list of hot topics, but once in office, nothing ever gets done. This is another problem; the apathy of the American citizen in response to politicians' refusal to live up to their promises. Why shouldn't political candidates make pie-in-the-sky promises about reforming the system when they have no intentions of following through? No one is going to hold them to it.
Now however, perhaps things are going to change. The Baby Boomer generation is approaching retirement age; there are a lot of them and they're starting to panic. It is bad news for the system if nothing is done,…… [Read More]
The highway system is an important part of the infrastructure that gives America a competitive advantage. Anything that threatens the highway system in the United States is a threat to the competitive advantage of America. These threats include a lack of funding. When one considers the current situation from this perspective, the importance of finding a solution to the problem of how to fund the highway system becomes one of the most important topics that the government faces.
The need for finding is obvious. We have already mentioned the possibility of raising taxes as a means to fund the necessary maintenance and expansion. However, the government is reluctant to take this route for fear of public repercussions. Raising taxes in the amounts needed could lead to devastating economic impacts. This is not the answer for obvious reasons.
The original highway system of the United States was built by private enterprise. It was a sector of the American economy and was maintained through funds collected for use of the highway. One solution that has been suggest is that the highway system be returned to private enterprise and they be allowed to collect funds for the maintenance of the roads, as well as to take a little profit for themselves. There are many sides to this argument. There is also a proposal that calls for an integrated effort between the Federal Government and Private entities. The follow will discuss arguments on both sides of the issue.
The privatization of the highway system in the United States will result in many currently public roads becoming toll roads. Drivers will have to pay their portion of the maintenance of these roads as a result of their use of this resource. There are many ways to look at this issue. From one perspective, the American taxpayer already pays for the road system through gasoline and other taxes. There are fears that allowing private companies to use the highway system as a…… [Read More]
privatization of Air Traffic Control
in the U.S.
Non-profit privatization of ATC
Industry experts position on privatizing the U.S. ATC
Improvement in safety and regulation
New Public Management Orientation in the U.S. Air Traffic Control
Technology up gradation and budgetary constraints
State-owned enterprises (SOEs) are organizations owned and operated by governments. There is a growing consensus amongst economists and governments that governments should not operate commercial organizations as it hampers the efficiency and productivity of the respective enterprise. There is an increased debate within the U.S. And other developed countries in favor of privatizing SOEs. Federal Aviation Administration (FAA) is one of the most important agencies of the U.S. Department of Transportation. FAA has four lines of business that includes:
Airports planning and development
Air Traffic Organization (ATO)
Aviation Safety (AVS)
Commercial Space Transportation (AST)
ATO's main role is air traffic control (ATC). Of late, there is a growing debate that ATC needs to be privatized or run by a non-profit government run board of directors (BoDs) which is independent of FAA. The paper aims to present arguments in favor of privatizing the U.S. ATC.
FAA manages the largest and the most complex aviation system in the world. There are four main lines of business that FAA operates. This over stretches FAA's ability and capacity to manage multi-dimensional business lines. However, ATC is a specialized and service-intense business line crucial to flight operations. The recent statistics (such as 58% increment in flight delays since 1995 and 68% increment in flight cancellations) indicate that ATC's efficiency and productivity can be improved by privatizing the entity. The introduction of private companies to deliver part or whole of the air traffic safety services will allow all the stakeholders (pilots, passengers, employees of ATC) to reap the efficiency and productivity related benefits.
Non-profit privatization of ATC
There…… [Read More]
Telecommunication Privatization in Nigeria
The Challenges of Telecommunication Privatization in Nigeria
In the 1990s, many multinational nongovernment agencies (such as: the IMF) encouraged the privatization of state owned entities in favor of privatization. The basic idea was to encourage these organizations to become more efficient, attract large amounts of working capital and to be more responsive to the needs of stakeholders. In Nigeria, this was touted as a solution for effectively dealing with inefficiencies impacting the telecommunications sector to include: corruption and the inability to modernize. This is having a positive impact on the telecommunications firms and consumers. Evidence of this can be seen with that fact that more people have access to these services and new technology (Anderian 2005) (Etieyibo 2011) (Dahlan 2009)
However, more improvement is needed in addressing critical problems. Most notably: effective strategies for leveling the playing field among carriers, better approaches for regulating the sector and innovative solutions for managing growth / maintaining a balance between governmental / privatized entities. This is useful in showing the positive benefits from the privatization of Nigerian telecommunication companies. It is also illustrating immediate challenges that must be addressed and solutions for dealing with these issues. These factors are highlighting the strengths and weaknesses of privatization over long-term and the best strategies for enacting positive changes. Yet, despite these benefits criticisms continue to mount. This research study will focus on these issues and how they can be addressed over the long-term. (Obo 2012) (Dahlan 2009)
The literature review is illustrating new challenges from the privatization of the industry. At the same time, it is highlighting potential areas where more investigation needs to be conducted in order to understand the overall scope of the problems and create workable solutions. That can address these issues and ensure an efficient model is created in the process. It is at this point when new strategies can be introduced to enhance the current approach.
One of the biggest challenges impacting privatization inside the Nigerian telecommunication industry is the lack of support among the general population and there are no social practices which are encouraging its development. According to Etieyibo (2011), this making the sector dysfunctional by having no model to work off of that is taking into consideration the needs of different stakeholders. This leads to various abuses and it increases corruption on the…… [Read More]
Content reflects advertising and investor revenues. What is being reported on, and the tone with which it is delivered, are not influenced by the public except in an indirect way: response to media advertisements. Advertisements that garner attention are generally those that coexist with content that attracts viewers, readers, or listeners.
Equitable access to the media is also restricted, especially access to new media because they depend on emerging technologies. Almost every American household has a television but even though computer ownership is greater in the United States than in most nations a large portion of the American public cannot afford a computer in the home. Social class -- which happens to be linked directly to race as well -- therefore determines access to new media. Because new media is the only real free outlet for non-traditional voices, the underprivileged are essentially denied access to information. Public opinion on political issues is skewed because of disparate access to media. Similarly, the ability to think critically is absent from most segments of American society due to restrictions on access to content and media outlets.
Nonprofit and educational broadcasting remedy the media conglomeracy somewhat, mitigating limited content with the unconventional. However, funding for nonprofit and educational broadcasting is meager. When funding is available it may arrive in the form of special interest groups that have as much control over content as corporate headquarters do. Therefore, nonprofit and educational broadcasting offer only limited opportunities for an egalitarian media.
Privatization is beneficial to an extent. By raising revenues and promoting competition among media sources, privatization enables rapid advancements in technology. Those technological advancements may in turn lead to more ways the general public can discover accessible ways of receiving and disseminating ideas that are alternative or even contrary to the norm.… [Read More]
How Privatization of Water is Bad for the World
Water is a scarce resource, a fact that is becoming more evident as time goes on and pollution becomes more evident. There are many instances where privatization has been beneficial; bureaucratic red tape often makes policy making a headache for consumers, and some eagerly advocate for privatization of certain resources. Privatization often has advantages, but in many instances it also realizes many of the same disadvantages of many other political systems including customer complaints and scandals (Morris, 2006). When it comes to water, privatization can lead to the destruction of healthy drinking water, a lack of equitable access of drinking water, and a shortage of drinking water not just in third world countries, but in developed nations. Water is not a resource that can be privatized successfully; it is a resource that has to be standardized to be made safe, and one that basic human rights dictate must be made readily available to everyone.
Privatization is not something new; it has existed ever since corporations have; it is a money game. Water is a resource that is readily available; it is a basic right, something that should be readily available for all of mankind. Private companies exist for the private man as a way to make money. They can "help" people, but only if it is in the best interests of their board of directors, and in the best interests of their shareholders. When push comes to shove, the private company is going to do what is best for the company, and not for the individual citizen. When a resource comes along that is valuable, something that is as essential to life as is water, then a company has the potential to make an enormous profit. Corruption…… [Read More]
Telecommunication Privatization in Nigeria
Definition of Privatization
Privatization is the process by which an entity is made privately owned thus the ownership is no more public. The debate of public and private goods and ownership is old. The privatization of goods and entities is considered quite more efficient the reason is that the private goods are owned by people that know that earnings will increase as more effort and struggle will be put. The aim of managing private goods is wealth and profit maximization thus these services are efficient but bear an expensive cost tag. On the other hand the state own or public goods that are created as through a process of nationalization, are less efficient yet still productive and are also cheap. The state offers public services to benefit its people thus these goods and services are cheap. But the people working in organization are working for salary and not profit thus they do not excel in performing their tasks.
Compare Privatized Telecommunication Companies in Nigeria to the Global Development
The global standard development in Nigeria was initiated during year 2006. From year 2000 when there was 0.1% population using internet, today around 26% population uses internet services (Internet Usage and Telecommunications Reports, 2012). The increase of tele-density and access to internet is lower in Nigeria than other major countries in Africa like Egypt yet the increase in acceptance and services is remarkable that is supported by privatization of companies. The national Telco Nitel was privatized in 2005. V-Mobile and privatization of other companies has simply catalyzed the growth. While the broadband subscribers have increased to a massive number of 1.6 billion, there are also nearly a hundred million subscribers in Nigeria alone. While the number is quite big for a country that started journey about a decade ago, the Nigerian regulatory bodies and telecom companies have a challenge to overcome traditional work environment, fight management issues and improve the financial conditions for operation of the industry.
3) Worldwide theories…… [Read More]
Water Privatization in Bolivia: Assessment
Bolivia is one of the poorest countries on the continent of South America. Under pressure from the World Bank, the water systems of several of Bolivia's poorest areas were put up for purchase by private investors. The privatization of water in Bolivia began in the latter 1990s, just a few years before the turn of the 21st century. The problem, the controversy, and the resistance continue into the 21st century with vigor. There have been uprisings by the local peoples, most recently in the area of Cochabamba, an area in which the water is owned by a private United States investor, Bechtel. Institutions such as the World Bank and the International Monetary Fund have advocated the privatization of water to developing countries as a means to improve their financial standing for decades. These institutions make claim that their intentions behind such support or advocacy was to be a better solution to economic growth as well as move more countries toward free market systems. The war for water in Bolivia rages on, exposing the objectives of the parties involved, the grievances of Bolivians, and the real life, experienced consequences of economic shifts. The situation in Bolivia demonstrates the complexity and the potential for water privatization programs around the globe, as access to drinkable water becomes an issue with increasing significance in the 21st century.
From the perspective of the local Bolivians whom are affected by water privatization, there are multiple reasons that fuel the protests and riots against water privatization. In the example of Bechtel, the company came into Cochabamba and improved the existing infrastructures of their water systems. The improvements were sound and strong, yet the costs of these improvements were passed along to the locals. This is already an impoverished area. The locals complained that they were no longer able to afford the high rates for water and that the system was not only affordable, but also adequately functional when the water was under government control.
Though the improvements that Bechtel made included extended the water systems to reach more communities who already had very limited access to water, yet because of the increased prices, the local people were in a state of suspended anticipation -- now the water was…… [Read More]
Aviation: Effect of Privatization on the Aviation Industry
The aviation industry is one of the fastest growing global industries - contributing large amounts to the nation's revenue kitty every year, while also facilitating tourism, international investment, world trade, and economic growth. The industry is, "therefore, central to the globalization taking place in many other industries" (Ochieng & Ahmed, 2014, p. 10). Being one of the most competitive, the industry pushes airlines to stay abreast with relevant developments and make radical changes to their structures if need be. The new trends that have been observed within the industry include airport and airline privatization, liberal bilateral agreements, aviation policy liberalization, and increased globalization - all of which revolve around deregulation. This text examines how these trends have affected the aviation industry, and in particular, how they affect the quality of service delivery and airline operational costs.
A Brief Overview
Privatization of state enterprises serves five major objectives; i) reducing government size; ii) increasing the economy's productivity; iii) eliminating subsidies and expenditure that do not improve the welfare of citizens; iv) giving government ample time to concentrate on more strategic, high-priority issues; and v) improving the status of public financing (Kinnamon, 2002). In consideration of these objectives, the U.S. government, in 1976, "set out to create a multi-step privatization process divisible into four stages; selection, deregulation, preparation, and sale" (Kinnamon, 2002, p. 7). It was, however, not until 1978 that the industry was fully deregulated. With President Carter's assent, the Airline Deregulation Act took effect, leaving airlines to enter any route, charge the fares they desired, and exit the industry at will.
The Effect of Deregulation and Privatization on the Aviation Industry
Privatization has generally improved the quality of service delivery in the U.S. aviation industry, as has been discussed in the subsequent subsections of this text.
I) On the Quality of Customer Service
Load Factor: service quality in the airline industry can rightly be measured by the ease with which a customer can secure a seat on their preferred flight (Morrison, Yorrow, Lawton-Smith, Yamauchi & Murakami, 1995). A low load factor implies that a customer can easily acquire a seat in the flight of their choice, and vice versa (Eckel, Eckel & Singal, 1997). As load factor increases, so does the probability that a traveler's preferred flight will be totally sold out, forcing them to settle for one whose terms are…… [Read More]
Water is necessary for life on the earth. Humans, animals, and all plant life require water in order to sustain existence. Looking for clean and drinkable sources of water has become difficult, especially in humid and dry areas such as the Middle East or in parts of Africa where water supplies have become contaminated. In the wake of these types of situations, a market has developed for the privatization of water sources. Large corporations are buying out sources of clean water and selling it again to people in need at a substantial profit. This term, privatization, can also refer to the taking over of water supplies for local areas by large conglomerates rather than public companies.
As in the privatization of other industries, the comodification of the water industry has its proponents and its critics. There are those who state that having privatized water companies allows for certain groups to send water to locations where it is most desperately needed.[footnoteRef:1] There are various motivations behind the desire to transfer public works into a privatized enterprise. Among these are the desire to increase efficiency and improve the quality of service and also the desire and ability to replace inefficient or corrupt management of the utilities[footnoteRef:2]. Often the services provided before privatization are poor and shoddy, leading those affected by the takeover to be pleased by the result.[footnoteRef:3] It has been documented that locations in poor and rural areas with privatized water companies have a child mortality right that is 5-7% lower than locations without these groups. [1: Ronald Bailey. "Water is a Human Right." Reason. 2005. ] [2: Emanuele Lobina & David Hall, "Problems with Private Water Concessions: a Review of Experience." 2003. ] [3: Philippe Marin, "Public-Private Partnerships for Urban Water Utilities." Trends and Policy Options. 8. World Bank. (Washington, DC: International Bank for Reconstruction). 20.]
Those who disagree with these supporters state that the privatization of water companies has allowed certain groups to take command of a necessary commodity and then to essentially abuse and misuse the needs of the corresponding peoples. One of the major problems that people have with water privatization is that the company who purchases the water supply effectively has a monopoly.[footnoteRef:4] With no competition in the area who are able to…… [Read More]
Corrections Accreditation and Privatization
In recent times, the field of corrections has been seeking to address quite a number of emerging issues as a result of a wide range of catalysts including but of course not limited to privatization and accreditation. In this text, I explore a number of issues to do with corrections accreditation and privatization.
According to Stinchcomb (2011), corrections accreditation can be taken to be "an official recognition that a correctional program or facility has met certain national standards following an on-site audit." In the United States, the body charged with corrections accreditation is the American Correctional Association (ACA). As Stinchcomb (2011) notes, just as is the case with universities and hospitals or other organizations seeking to enhance their performance levels, the relevance of accreditation for corrections cannot be overstated.
In regard to how the development (professional) of corrections officers is impacted on by corrections accreditation, it can be noted that one of the key organizational purposes of ACA is the promotion of the professional development of corrections officers. Indeed, the on-site audits often result in the creation of a safer working environment for corrections officers. Further, as these officers seek to ensure that they adhere to the set standards, they tend to perform in the profession's best interests by embracing the best practices of the profession. This in exchange makes corrections officers have an increased level of pride and satisfaction in their work hence further advancing their professional development.
There are several approaches industry leaders can take so as to guarantee better correctional officer professionalization and accreditation. Basically, industry players need to come up with a more inclusive and comprehensive training manual for correctional officers. This means that correctional officers training should capture essential skills and capabilities including coping and conflict resolution skills. Such skills are necessary in managing occasional conflicts that characterize institutional life. The subsequent curriculum should also ensure that correctional officers are better acquainted with the necessary criminal justice concepts.
Part 2: Privatization
Prison privatization is essentially the transfer of prisoners from a public facility to a privately held/managed facility based on a contractual agreement between the government and private contractors. In this case, though prisoners…… [Read More]