privatisation theory

Privatisation theory explores the process of transferring ownership and management of services or assets from the government to the private sector. The main idea is that private companies often operate more efficiently and push for innovation because they are motivated by profit. By privatizing, governments aim to improve service quality, reduce public expenditure, and promote competition. However, critics argue it can lead to reduced access or increased costs for consumers, especially if regulation isn’t strong. Overall, privatisation seeks to balance the benefits of private sector efficiency with the need for public interest safeguards.