Privatization will lead to less corruption.

 

Background :-

  • Privatization is the process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector.

In Favor :-

  • Employees of private companies are given high salaries, so they are much more motivated to work, and less interested in corruption.
  • Private companies take immediate action on those who take bribe. This creates fear in employees to take bribe.
  • Private institutions take more care to keep them clean and to provide more facilities.
  • Private companies have competitive spirit. So, they offer more features to public.
  • Our country’s GDP increases from the taxes paid by private institutions.

In Against :-

  • There is no guarantee that privatization leads to less corruption, because corruption does exist in the private companies too.
  • The cost of products increases by privatization.
  • If we take private petrol bunks, even though they keep petrol bunks clean, they charge high than the bunks under government control.

Conclusion:-

                 Corruption does not depend on whether it’s private or government, it completely depends on individual’s attitude. But by privatization, we can reduce corruption up to some extent.

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Afterwords :- What are your thoughts on this topic? Feel free to express your opinion in the comment section below.

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11 comments ✍

  1. These are the people like us who get corrupted not the public or private sectors. So, it’s all about one’s mindset towards the job and the other who wants to get the work done. Everything can’t be privatized and privatization is not the only solution.
    We can think on the lines of Digitization wherein everything will be online and transparent that will lead to good end results. Moreover, Government and people have to work together to sort out issues like Corruption as it starts from us.

  2. Corruption thrives in the economic system of India from the grass root level. However corruption in private firms is difficult because every firm has certain rules and policies which have to be followed with complete responsibility. Companies do take strict actions against employees who indulge into corruption. Private firms provide greater opportunities to earn higher salaries and incentives and the employees have greater amount of work to perform throughout. In public sector jobs are more confined and since it is a vast structure it gets difficult to catch hold of all the corrupt activities taking place. Moreover they have lesser responsibilities and fewer opportunities of promotion so for earning more money they start asking for bribes and adopt other corrupt measures.
    Private firms are functioning in a highly dynamic environment which is getting competitive day be day and since today's market is consumer driven it becomes necessary for the companies to offer good products at reasonable prices or else survival gets difficult for them.
    It definitely doesn't mean privatisation would totally eliminate corruption. When the top officials get involved in such activities it is rare to get caught by others though some scams have come into light in a few years. Private companies are profit-driven. If we expect railways to become private then we also need to prepare ourselves to pay higher price for travelling in trains and then it will no longer remain affordable for a big section of society. Another activity that companies get involved into is the the insider trading. Though it is not considered a criminal offence it is an economic offence and is illegal as it is against the interests of investors.
    So to reduce corruption it is important for people to change their mindset more than anything else. Privatisation may reduce corruption but again it will also have some adverse effects on economy.

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