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WEEK 10
TOPIC: ECONOMIC REFORM PROGRAM
CONTENT
- Consolidation of Financial Institutions
- Privatization and Commercialization
- EFCC and ICPC, NAFDAC, SON.
Sub-Topic 1: Privatization and Commercialization
- Privatization: This can be defined as the deliberate policy and action of government in transferring the ownership, control and management of government owned enterprises to private individuals. Privatization goes beyond restructuring and re-organization of public sectors. It also deals with the wholly or partly transferring of public enterprises to private sectors.
- Objectives of Privatization: There are some reasons for privatizing public enterprises in a country.
- Free Market Economy: Privatization is meant to embark on systematic conversion of public enterprises to private sectors to permit free market economy.
- Restructuring: Privatization restructures the public sectors in a country in order to identify and also reduce the dominated number of unproductive investments and firms in the public sector.
- Employment Opportunities: Like commercialization, privatization creates employment opportunity and avenue for acquiring new knowledge and technique in the production and distribution of essential commodities in the country.
- Elimination of Losses: the policy is to ensure constant making of profit by private firms and eliminate losses in the economy.
- Efficiency in the use of resources: the policy is implemented to ensure efficiency in the use of resources by the economic sectors.
COMMERCIALIZATION
Definition: Commercialization can be defined as a deliberate action and policy of the government to make state or public enterprises more efficient and profit oriented. In other words, commercialization entails restructuring, re-organizing or re-activating of public enterprises to make them more productive, profit-oriented and self-sufficient without depending or relying on government aids. Commercialization of public enterprises can be in form of full commercialized business or partly commercialized enterprises. These enterprises are re-organized and re-structured public corporation that are expected to operate in the same manner as private enterprises with the primary motive of profit maximization without government support.
Objectives of Commercialization
Growth: One of the reasons for commercialization of public enterprises is to ensure quick growth and expansion of business enterprises that belong to the government.
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