Which of the following was NOT an advantage of privatisation?

Key Points

• Reduced competition is not considered an advantage of privatisation.
• Privatisation typically aims to increase competition by introducing private players into sectors previously dominated by state-run enterprises.
• Increased competition can lead to better services, more innovation, and greater efficiency in the market.
• Other advantages of privatisation include generating additional revenue for the government, reducing political interference, and improving overall performance of the enterprises.

Additional Information

• Privatisation refers to the transfer of ownership, property or business from the government to the private sector.
• It is often part of broader economic reforms aimed at improving efficiency and productivity.
• Privatisation can also help in reducing the fiscal burden on the government and in fostering a more competitive economic environment.
• However, it is important to carefully regulate privatised sectors to ensure fair competition and prevent monopolistic practices.