Privatization of Public Enterprises and Its Consequences on Economic Policy... By Dr Anil Khare (www.anilkhare.com)

Privatization of public enterprises and its implications on economic policy is a concern of great interest these days. With the passage of time, the government has increasingly tried to support the economic recovery by means of undertaking initiatives that will allow for the stimulation of the economy. Such initiatives have led to the extension of various public services and the creation of many institutions like the ESOMAR Research Institute, the Philippine Institute of Technology, De La Salle-College of Saint Benilde, and the Graduate School of Business of the University of Massachusetts Chelmsford. These endeavors have been instrumental in creating more jobs and generating revenues for the country.

However, the current administration has taken things a step further and today is implementing yet another program that will see the extension of public enterprises. This time around, the administration has decided to create more Puerto Rican public enterprise institutions. There are numerous reasons why such measures are being taken. Some of them include:

-To stimulate economic activity. The main reason is to improve the productivity of the national economy. Economic policy is also taken into consideration when there is an assessment conducted on the efficiency of the economic policies being implemented. When economic policies fail to yield expected results, this causes the failure of implementation. The process of economic policies is seen as a huge roadblock in achieving the country's goals and objectives. The Puerto Rican government has taken this into account and wants to use the services of such bodies to address the situation.

-To make certain that the government is able to meet its commitment to improving Puerto Rico's economy. Since the government has assured that it will pay for the services rendered by the Puerto Rican public enterprises, it has then added the burden of maintaining them. This is how Privatization of public enterprises has been beneficial to the nation. It has also helped in improving the overall efficiency of the Puerto Rican economy. The main reason is that the management of these public enterprises has also been improved.

-The economy will be able to reach its full potential. This is one of the implications of Privatization of public enterprises. When the economic policy is well-managed, the economy will be able to achieve more goals and objectives. It will be able to increase economic growth, employment generation, and income. When the economy is running smoothly, unemployment will be kept at minimal levels and this will go a long way in providing a stable economic policy for the Puerto Rican citizens.

-itiveness and responsibility promoted. The government is encouraging the growth and development of the Puerto Rican economy. They also promote responsibility and initiative among the population. All the public enterprises belong to the hands of the people. The management of the enterprises will not only be carried out by trained professionals but it will also be conducted with the input from the community.

-activity towards the foreign currencies. This also has an impact on the economy. The foreign currency trade plays a vital role in supporting the domestic industry. With this, imports of various goods can be supported and this will help the domestic industry. It also helps in creating jobs.

All the above mentioned impacts of Privatization of public enterprises have resulted from the reasonable approach of the current government in dealing with economic policy. The previous administration failed to recognize the importance of such measures and thus the economy was left behind. The current administration has worked hard so as to make sure that the impacts of Privatization of public enterprises are positive. It has ensured that the rights of the investors are protected. And it has also made sure that the measures involved are well studied and discussed with the relevant parties so that the objectives and impact of the measures can be better understood.