Theory question 107
Business OrganisationsGive four reasons why the governments of West African countries have found the policy of privatization attractive.
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Model answer
Any four: to improve efficiency of the enterprises; to reduce the financial burden of subsidies on government; to raise revenue from the sale of enterprises; to reduce political interference and corruption; to attract foreign investment and technology; to widen share ownership; to encourage competition and better services; conditions of IMF/World Bank (structural adjustment).
Explanation
Privatisation is the sale of government enterprises to private owners.