StudentShare solutions
Triangle menu

Ownership as such does not matter relative to the conditions of competition and regulation - Essay Example

Not dowloaded yet

Extract of sample
Ownership as such does not matter relative to the conditions of competition and regulation

From the path that different nations have followed with regards to their individual privatization drives, the most notable point that comes forth is that there should be the creation of a regulatory agency beforehand to oversee the process. It has also been shown that effective introduction of competition within market sectors (that means both within existing state-owned firms and the firms that have been handed to private entities as part of privatization) has ensured rapid acceleration of the economy.
Any such that regulatory agency must be free from any outside influence by the government and must prove as an interface to investors and must also work towards monitoring and managing the concerns of the producers and consumers alike. In other words, a regulatory agency, if it has to be successful, must treat state-owned and private entities alike, which is the reason it has to remain free of any form of influence. It is also deemed appropriate to mention the need of a regulatory agency, which is created out of the fact that any form of transformation of an economy cannot happen in an instant and requires a substantial period of time, during which there needs to be a watchdog that can always be on the lookout of discrepancies and initiate the requisite actions.
Experiences from previous attempts at privatization have suggested that the economy has better progressed when there has been the introduction of effective competition wherever possible. The government would have to consider the pros and cons of introducing such competition, most importantly on the costs. At the micro level, the implications on the purchasing powers of consumers and the costs incurred for procuring raw materials etc. need to be considered thoroughly.

PART 2: TREND OF PRIVATIZATION
When it comes to the type of ownership and its influence on the competition (with regards to the cost of production), Pollitt has mentioned that there has been no notable difference in the cost of production as part of a study conducted by him on countries such as the UK, USA, Canada, France, Greece and Germany. This may seem to be what was originally expected among theorists, but this has been the case in almost the entire developed world1.

Another point that needs special mention here is that the pattern of privatization has been so varied among countries that there are no specific set of parameters that may be used to judge its effectiveness, thus leading researchers to follow different paths towards studying the phenomena. It is in this regard that privatization is studied in close relationship with various factors and concepts such as ownership, competition and regulation. In fact, Zhang has pointed to the fact the distortion in the results of studies on privatization were due to the fact that all such studies had been concentrating on the type of ownership alone. Thus, other factors such as the competition within the market and the role played by regulatory agencies were not given any significance.

Over the years, the trend and pattern of privatization has heavily relied upon how resources should be regulated and has also been dependent on the manner in which they should be organized and utilized appropriately. According to Vickers & ...Show more

Summary

Privatization has of late, been the trend especially among developing countries, the most notable ones being China and Russia (after the break up of the erstwhile Soviet Union). But, in addition to improving the economy of a nation, it should also be politically viable for a nation to undertake privatization on a mass scale…
Author : lolarowe
Ownership as such does not matter relative to the conditions of competition and regulation essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Ownership as such does not matter relative to the conditions of competition and regulation"
with a personal 20% discount.
Grab the best paper

Related Essays

Past Does Matter
Student’s Name Professor’s Name Subject July 23, 2011 Past Does Matter The past has a definitive role in determining the future of humans. Human civilization has developed into its current status by learning lessons from the past and absorbing the virtues and values imbibed by previous generations.
2 pages (500 words) Essay
Does Turkey need regulation
Barring that, they will have little opportunity to remain competitive and make significant enough revenue in order to stay in business. At the same time, society is crying out for regulation about all types of advertising, claiming that it has invaded their lifestyle, encroached upon their freedom to decide on their own, and is influencing certain vulnerable populations to purchase products they have no reason buying in the first place.
3 pages (750 words) Essay
'Does Country Matter' - Summary and Critque
While agreeing with many of the differences highlighted in such studies (e.g. political, social, economic, institutional etc.) they took a broader approach. They examined 'foreign affiliates' these being 'independent units wholly or partially managed or controlled by a foreign firm in a host country', by defining levels of effect on their performance/returns.
2 pages (500 words) Essay
Title: Does IT matter OR Does Information Technology matter
Questions has been raised on the significance of information technology but considering its definition which changes the meaning of time, it would be true to say that more can be achieved through IT than without it (Reynolds 2009 p 27). This technology has managed to
10 pages (2500 words) Essay
DOES AGE MATTER IN A RELATIONSHIP
ill find out that difference in the ages of their acquaintances translates to trust and confidence perspectives that the individual develops from an early age (Buhrmester and Furman, pp104-103). It therefore follows that the age of a friend and a partner in a relationship
8 pages (2000 words) Essay
Does Communication Matter in ALL Fields
This paper provides an overview of the ways in which effective communication is actually vital in various fields (in which communication is generally regarded as non-essential) in order to prove the hypothesis
2 pages (500 words) Essay
'Emotional intelligence in leaders: Does it matter'
Several studies have been conducted to find the relation between emotional intelligence and leaders in an organization. It has been found that empathetic leaders tend to reflect greater intellectual
2 pages (500 words) Essay
Age does not matter in relationships
However, age does matter in a relationship between couples who have attained legal age. Age does matter in a relationship between individuals who are of legal age. According to Heitler, a relationship between a young
2 pages (500 words) Essay
Does IT Matter Assignment
Knowing that customers these days are technology savvy and are too much concerned about every new thing and fashion that comes in the market, companies’ managers try to satisfy their customers by
2 pages (500 words) Essay
Does Class Really Matter
I feel the importance of the class system is defining who we are and how important we are regarding the manner in which we can access the various social and economic opportunities
5 pages (1250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation