Essay On Privatisation

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Introduction
"What is owned by everyone is perceived to be owned by no-on."
- Colin Robinson (2006).
In the United Kingdom, the Postal Services Act, passed in 2011, aims to secure the long-term future of the Royal Mail along with the Post Offices, and preserving the universal service. The Act allowed the sale of up to 90 percent of Royal Mail, and as of 2013 it passed responsibility for economic regulation from Postcomm to Ofcom. In this twenty-first century, privatisation of government entities has been the common resolution in the United Kingdom. Across the world several other public firms have gone private. A dangerous factor driving this shift to privatisation is the meager performance of public entities. One analysis is my examination that public firms are unproductive because they deal with the intentions of politicians rather than maximising efficiency. One important objective of politicians is employment: they care about votes of the people whose jobs are in danger and, in many cases, unions have significant influence on several political parties then and now. For, example, there is evidence showing higher employment per unit of output in publicly provided municipal services. The British government for some time refused to close grossly inefficient coal mines to preserve mining jobs. In this paper, I develop a model of privatisation that explains the inefficiencies of public firms and the improvements of efficiency after privatisation, along with some political issues.
In October 2013, the United Kingdom government launched the Initial Public Offering which included creating an employee share scheme placing 10 percent of th...

... middle of paper ...

...ommunication and both from new postal operators. In theory, this might mean that in other industries some level of the efficiency improvements observed may have already been realized.
• Postal service demand is falling which can lead to increased pressure on managers in the private sector forcing to service quality improve efficiency. However, it might also make efficiency improvements difficult to accomplish. One example is because there could be more resistance to labour changes if the workforce has previously experienced cuts due to falling demand.
• The postal industry needs to modernise which means that the potential for efficiency gains from postal privatisation are greater than those in other industries as postal operators can profit from both modernisation and the more universal improvements that firms have been able to realise subsequent to privatisation.

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