Some countries are handing over public services such as hospitals, railways and education to private companies to be run for commercial profit. Are governments justified in letting private profit manage the public interest? v.1

Simply stated, privatization is the transfer of government functions to the private sector. Governments in the modern world are increasingly privatizing the public service utilities to operate them in an efficient and effective manner. However, this has brought forth some serious concerns about the process. But, in my opinion, with proper set of rules and regulations, these issues could be resolved and privatization can play an inevitable role towards the progress of the country. On one hand, there are some worries in public regarding the process of privatization. Firstly, many individuals believe that objective of serving the people may be lost by the privatization. The greed for higher profit or private companies has increased the cost burden on the consumers. For instance, privatization of electricity transmission and distribution has substantially increased household electricity cost. In addition to this, it is against the public interest as they pay taxes to the government for these facilities. So, they expect to receive these facilities at reasonable cost. On the other hand, there are certain benefits that are too large they cannot be ignored. First of all, it is necessary to understand why governments go for the option of privatization? The answer is that, it all depends upon the economic stability of a country. There are certain departments that become white elephants for economic progress. Therefore, it becomes necessary to privatize such institutes to earn a handsome amount of profit from them. Moreover, privatization leads toward less political influence that would also increase efficiency and effectiveness. For example, In Switzerland, a few decades before number of accidents at highway were considerably higher. Investigations proved that number of driving license were issued to inexperience drivers in exchange for bribes. However, transferring service to private company improves the situation. To conclude, privatization must be on the table if the country is to prosper. The concerns can be solved by governments through setting up regulations and their effective reinforcement.