Privatization: Gov't Acknowledges Private Sector's Role in Development

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495 words
Carnegie Mellon University
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Privatization of any government institutions involves the transfer of all responsibilities initially bestowed on the government and its rights in managing and controlling an institution (Ballati, 2001). It is evident that the move is based on the recognition by the government of its inability to provide a conducive environment for industries to thrive more efficiently. The government recognizes the strengths of the private sector and the roles it plays in the development of a country. These strengths include the potential in developing facilities through its exceptional experience, relative freedom of operation without political interference, stronger management abilities as a result of its diverse wealth to recruit and compensate qualified administrators and technical workers. Therefore, it is true that privatization transfers the responsibility of a government to the private sector while strategic alliances keeps both the sectors engaged collaboratively. The government has many responsibilities towards its citizens, among the roles it plays in the marketplace includes regulation of how the market is operated, management of contracts, provision of government-centered services to its citizens among others (Calabrese, 2008). However, the government efficiency in delivering all these services is left in doubt as most of its bodies are known to engage with malpractices and mismanagement due to its broad and complex management structures. Strategic alliances are the agreed and documented guidelines between the government and the private sector (Das, 2014). These agreements are sealed upon the privatization process of an institution. There are three types of strategic partnerships, and they include strategic equity alliance, joint venture alliance, and non-equity strategic alliance. These guidelines protect the interests of both parties in case of unforeseen future disagreements. The guidelines keep both sectors working together with a common goal and therefore ensuring the prosperity of the privatized organizations. Therefore, the discussion illustrates that privatization transfers the government duties to the private sectors which means that the strategic alliances keeps both sectors actively engaged.

ReferencesBallati, D. (2001). Privatizing governmental functions. New York, N.Y: Law Journal Press.

Calabrese, D. (2008). Strategic communication for privatization, public-private partnerships, and private participation in infrastructure projects. Washington, DC: World Bank.,+public-private+partnerships,+%09and+private+participation+in+infrastructure+projects.&hl=en&sa=X&ved=0ahUKEwitlM7rhsrhAhUS3xoKHeKZCdIQ6AEIKDAA#v=onepage&q=Strategic%20communication%20for%20privatization%2C%20public-private%20partnerships%2C%20%09and%20private%20participation%20in%20infrastructure%20projects.&f=false

Das, T. K. (2014). Interpartner Dynamics in Strategic Alliances. Charlotte: Information Age Publishing.

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