privatization

Privatization and its repercussions
Hassan Shahzad (10-NTU-59)
Ahmad Hafeez (10-NTU-65)
Muhammad Fahad (10-NTU-67)
Zubair Shan (10-NTU-74)

Assignment
Submission Date: 31-1-2014

Submitted to:

Mr. Malik Muhammad Sohail

Department of Weaving
NATIONAL TEXTILE UNIVERISTY, FAISALABAD

Privatization
Privatization is a movement to deregulate private industry and/or transfer many government services, assets and functions to the private sector.
Classic Privatization: Total transfer of assets and authority from the government sector to the for profit or nonprofit sector
 Purposes: Shrink government; Reduce risk and cost
 Reason: Often a response to economic downturn; Ideology
Modified Privatization: Private sector provision of a service with public sector funding for example direct funding for a private college, Private trash collection paid for by tax revenue. It can also be stated as the public sector provision of a service with private sector funding for example student tuition at public colleges

1.1 Functions of privatization
1.1.1 Deregulation
The act of freeing from regulation especially from governmental regulations or one can say that the reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.
1.1.2 Decentralization
Moving the authority for a function from a central agency to an agency closest to where the activity is actually performed.
For the purposes of this study, privatization can be considered as occurring any time the government gives up some amount of control in any of several different ways. Examples include:  Authorities (Regional Transportation District)
 Charters (schools)
 Deregulation (education )

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 Transfer of assets to a private entity (Workers Compensation)
 Contracting with for profit or nonprofit entities (e.g., building contractors, social services)  Turning over a service (provision of, funding of)