Privatisation of the economy:, Microeconomics

Privatisation of the Economy:

Privatisation has to be viewed in two ways: In a narrow sense, it implies the induction of private ownership in a public sector undertaking. In a broader sense, it implies the enlargement of the scope of the private sector in the growth of the economy. In the initial phase of development planning in India, more especially after the Industrial Policy of 1956, the socialisation of the economy was measured by the size of the public sector in the national economy. The greater the share of the public sector, the greater was the degree of socialisation of the economy. Under economic reforms after 1991, the main thrust is that the private sector is

considered as the engine of growth. By placing restrictions on the public sector and by reducing its role in several areas where it earlier enjoyed a monopolistic position, the new environment assigned an increasing role for the private sector. Over the years, this was bound to increase the share of the private sector in theeconomy. This is the meaning of privatisation in a broader sense. It is now accepted by one and all that economic reforms are intended to increase the role of the private sector in the process of development and the scope of the public sector will be narrowed down to providing infrastructure like roads, railways, electricity as also in providing social infrastructure in health and education. Even in economic and social infrastructure, the assistance of the private sector will be sought, but major responsibility will be that of the public sector.

 

Posted Date: 11/15/2012 2:17:39 AM | Location : United States







Related Discussions:- Privatisation of the economy:, Assignment Help, Ask Question on Privatisation of the economy:, Get Answer, Expert's Help, Privatisation of the economy: Discussions

Write discussion on Privatisation of the economy:
Your posts are moderated
Related Questions
What is the theory of second best

Income and Substitution Effects A fall in price of a good has the two effects: Substitution & Income -Substitution Effect Consumers will tend to buy more of the good

A 5-years Rs.100 debenture of a firm can be sold for a net price of Rs. 96.50. The coupon rate of interest is 14 per cent per annum, and the debenture will be redeemed at 5 per cen

suppose ismail were to eat five pizzas per week.what is the total value ismail would place on his five weekly pizzas?


Determinants of Private Demand - Unemployment Rate Unemployment rates linked to specific courses of study can be useful indicators to determine investment in education. Their

List two advantages of markets identified by the authors of the text. Markets can be a significant way of allocating resources.  Markets include voluntary exchanges.  Another b

Q. Explain Capital Adequacy? Capital Adequacy: Capital adequacy rules are loose regulations which are imposed on private banks, in hope of ensuring that they have adequate inte

Q. Definition of labour force? Labour Force:Total population of working-age people who are willing and able to work and who thus have ‘entered' labour market. Labour force incl

Using a diagram explain the equilibrium point of a monopoly