Privatisation of a government-owned asset could reduce future earnings to the country.

Question

Quizplus · Accepted Answer

Privatisation of a government-owned asset may result in reduced future earnings for the country because the profits that were previously going to the government will now go to the private sector, which may focus on profitability rather than the public good. Additionally, the private sector may not be as accountable as the government in terms of ensuring that the asset is being used in the best interests of the country. However, privatisation may also bring in new investors and improvements in efficiency, which could ultimately lead to economic growth and increased revenue for the country.

Privatisation of a Government-Owned Asset Could Reduce Future Earnings to the Country