CONCEPT OF PRIVATIZATION



The concept of privatization is multidimensional in outlook. In the first place, privatization could be used to mean the tendency where government shares are sold to private investors. This definition means that such government enterprises and its ownership are now being transferred to individuals while government only step aside as a regulatory agent (Pan Africa Summit, 2000). By extension therefore, the concept of privatization does not in anyway suggests outright sale of government property per se. It however partially removes government from the scene as rightful owner while at the same time, ensuring government’s regulatory roles to check abuses of the market focuses (Wogu, 2007).


Going by the foregoing analysis, it is the opinion of the researcher to add that there is therefore a moral linkage between the concept of privatization and national development. However, the concept of development here can be said to be a vague concept. Privatization therefore may not necessarily enhance socio-economic development. Development in this sense, can be used in its actual sense to refer to individual human and societal growth, progress, increased skills, sustainability, high standard of living, low death rate, high level of literacy, absence of diseases, low crime rate and absence of corruption. (Usman, 2003) Development at the national level portends capacity utilization and institutional building, structural differentiation, nation-building practices, better and sustainable socio-economic policy options. This appears to be the actual linkages between the privatization policy and national development in Nigeria. Similarly, the researcher is here left with no option than to emphasize that privatization is an adaptation of liberalization. The two concepts, however, are mutually reinforcing, liberalization in its real sense therefore could mean some level of openness, removal of obstacles, restrictions, excessive tariff and regulation. Therefore, we can also say that a liberalized economy is an open economy, free and competitive economy where everyone is at liberty to compete in a free market system aimed at profit maximization (Cook and Patrick, 2000).

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