Privatization refers to ''transfer of overall ownership and management of companies and enterprises from public to private sectors.'' Some of those what used to be government-owned and controlled companies that had been handed to private sectors are PLDT, Philpost, Napocor and MWSS (Manila Water and Sewage Services). The aim of privatization is to ensure efficiency in supply and affordability in access of public goods. It helps the government in times of ineffectiveness. But, privatization of social services doesn’t serve the interests of the people. Along with the privatization of social services is the higher cost of products and services since gaining profit is the aim of engaging into business. These are some of the cons of privatization:
- A major concern to the organized labor is the impact of privatization on job security and employment. Workers layoffs, erosion of wages and benefits, and decreased levels of union membership could be parts of labor’s setbacks for embracing privatization.
- Prices may actually rise if the service was previously subsidized by the government. This is a common experience after a successful privatization process. This becomes imperative in a bid to provide qualitative service, improve efficiency and profitability.
- In extremely unavoidable cases, staff down-sizing could result to workers lay-off, and then unemployment rises. This aptly results to more crimes and social vices because ‘an idle hand is a devil’s workshop.
- One of the disadvantages is that the privatized company will no longer operate in the public interest. While a state-owned company primarily serves the citizens of the state, the primary goal of a privately operated company is to make profit. It may make these profits at the expense of its customers without serving them properly. For example, it may choose the market which is most profitable to operate in and leave less wealthy customers without a service.
In conclusion, it should be the government's reponsibility to provide its people the service they wanted.
I agree that the holding of privatization has a major effect especially to the employment sector. The topic of privatization has given a crucial role in the effort of national economic development we perspire to advance. However, some of this alleviation to jobs, livelihoods, skill training should irrigate the public infrastructure like hospitals and businesses e.g. Meralco - to giving employees a chance to gain ideas and endure beyond the government to take civil service.
ReplyDeleteThe aim of privatization is to ensure efficiency in supply and affordability in access of public goods. But its unfair because it only helps the government in times of ineffectiveness. But, privatization of social services doesn’t serve the interests of the people at all... - Mia Russell
ReplyDeletePrivatization puts not only the low-salary workers but also the employees of companies and institutions at a disadvantage in the terms of being taken advantage of by their new private employers if given a chance.
ReplyDelete-Paul Beltran
Privatization may have its good and bad effects that we need to consider first
ReplyDeletePrivatization from its apparent cost-saving properties to its possible negative impact on minority workers, provokes a strong reaction. The only thing that everyone can agree on is that the trend has been enormously beneficial to owners of small- and mid-sized businesses. But still, social services is the higher cost of products and services since gaining profit is the aim of engaging into business.
ReplyDeletePrivatization may not be all good. It has its bad effects. I mean from the beginning of the article, it already states that if big companies/businesses would be moved to private sectors the owner would think about business first and not the people. So the government shouldn't privatise all those big businesses because the government should be thinking about the benefit of the people.
ReplyDeleteThere are many pros and many cons to privatization but the government must keep in mind that they are here to help all the citizens of the country and not just it's economy.
ReplyDeletePrivatization is not entirely for the benefit of the country. Sometimes, we need to know the motives of doing such an act.
ReplyDeletePrivatization helps our economy but in terms of workers it still does but in a very little way.I believe if the government privitized more companies it help our economy but it wouldn't help our people in a very effective way because it focuses on making profit.The government and the owner benefits more.I believe we should consider these things.
ReplyDelete-Marc Lim
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ReplyDeleteDespite the privatizations of some social services, I still think that if this is the government's decision, then it would be wrong, it should stop privatizing some other social services and it should begin taking control of them again. Government’s privatizing some of the crucial social services is like abandoning one of its primary responsibilities to the people which is to help them.
ReplyDeleteMany reasons explain the movement by cities and states toward privatization to restructure and "rightsize" government. Much of the impetus is the desire to inject competition into the delivery of state services in order to provide services to citizens in a more-efficient and cost-effective manner.
ReplyDeletePrivatization has 2 sides. The good side is that it will be maintained properly with proper financial supervisions but the bad side is many people will have no jobs or no source of living especially people that belong to the public sector.
ReplyDeleteDespite the privatizations of some social services, I still think that the government’s decision was wrong, it should stop privatizing some other social services and it should begin taking control of them again. Government’s privatizing some of the crucial social services is like abandoning one of its primary responsibilities to the people.
ReplyDeleteFrances Bosque BSOT 1-B
I do agree that the government should be the one to render the needs and wants of the people because that is what they are payed for. Privatization has it's good and bad effects but at the end of the day, we have to think of our country's economy first. If privatization is good for our present economy, then why not?
ReplyDelete-Therese Alcoseba BS OT 1-B :D