August 19, 2016

Economic growth through more privatisation

Favoured by a great wealth of untapped natural resources, our country has much to gain in inclusive growth and sustainable development by implementing fundamental reforms in the privatisation of services in transport and electricity just as in telecommunications.
The government has vowed at every opportunity to incentivise the private sector as a means to propel sustainable economic growth. The simplest thing for the government to encourage the private sector starts with the reduction in the number of state-owned services which can better thrive under private ownership. In this respect, encouragement should be given to open and competitive markets.
Economic researchers are unanimous in the phenomenon that private sector development is central to the success of economic reform, but they warn that its benefits should not be limited to the business people only.
An importing thing to note is that market competition does not necessarily mean market monopolisation. It is, therefore, incumbent on the government to protect the end-users from being overcharged for essential consumer goods by adopting development strategies that will guarantee consumer welfare.
In addition, the government should implement effective competition policies that will enable private industries to become more competitive home and abroad and willing to provide the best deals for customers. With this end in view, many countries and regional blocs are busy with the adoption of effective competition laws and frameworks designed to empower the poorest section of society, thereby ensuring social mobility.
All things considered, the government’s commitment to political reform will be judged ineffective as long as the grass roots of society remain to be hit the hardest in an outbreak of political turmoil.


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