8-1 Final Project Milestone Three: Rough Draft PAD 630

Destiny Nance

Southern New Hampshire University

PAD 630

December 22nd, 2022

How the Introduction of privatization is affecting public policy decisions and targeted social outcomes

The government in Western Europe and Latin America have nationalized their firms. The industries such as healthcare systems, banks, and whole other industries have been nationalized. In Eastern Europe, communist regimes have made an effort to ensure the total elimination of privatization (Koop & Jordana, 2022). In the 1980s, the wave caused by the public sector started to turn in several regions of the world. In the United States, the Reagan administration provided new marching orders and included “do not just stand there, undo something.” The statement is considered the key principle of undoing the privatization of government assets and services.

The shift from public to private management has resulted in an improvement in terms of the efficiency and quality of government activities. It has led to a reduction in taxes and shrunk the size of the government. While government agencies or firms have funds generated from the taxpayers for their operations, private firms are forced to ensure the generation of adequate net income for their survival in the market (Koop & Jordana, 2022). Therefore, the controllers do have strict rules and standards to ensure clients’ satisfaction. The existence of stronger management enables private firms to be efficient and more productive.

Privatization is characterized by the freedom of operation without any form of fear. On the contrary, firms under government control involve the voluntary or involuntary decision-making process which is influenced by different political, economic, and social factors (Merkbawi, 2021). This is contrary to privatization where there is freedom of operations within the preferred diversified market. There is no restriction on the use of the resources and are rather provided with improved access to the resources to generate the best output.

References

Koop, C., & Jordana, J. (2022). Regulatory independence and the quality of regulation. In  Handbook of Regulatory Authorities (pp. 211-226). Edward Elgar Publishing.

Merkbawi, R. (2021).  Political Corporate Social Responsibility and Corporations Ethics in the Confessional Democracy System of Lebanon (Doctoral dissertation)