PRIVATIZATION. Development Studies Course Teacher : Muhammad Bilal Khalid

Transcription

1 PRIVATIZATION Development Studies Course Teacher : Muhammad Bilal Khalid

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3 CONTENTS What is privatization? Reasons for privatization Privatization in United Kingdom. British Airways Water Industry British petroleum British electricity British prisons

4 What is privatization? Privatization is the opposite of nationalism. The transfer of ownership of property or businesses from a government to a privately owned entity.

5 Reasons for Privatization Raising money. Making industry more efficient. Spreading share ownership.

6 Privatization in United Kingdom

7 BRITISH AIRWAY

8 BRITISH AIRWAY A British Airways Board was established by the United Kingdom government in 1972 to manage the two nationalized airline corporations.

9 REASONS BEHIND THE PRIVATIZATION OF BRITISH AIRWAYS Acquisitions, mergers, cases, regulations, and strikes. Aver-employment. Productivity was very low compared to its competitors. Earnings of BA were declining.

10 BEFORE AND AFTER PRIVATIZATION EFFECTS OF BRITISH AIRWAYS PROFIBILITY: After privatization their profits boomed.

11 NUMBER OF EMPLOYEES After privatization it was increased by 31% salary increase due to privatization.

12 MARKET SHARES OF BA After the privatization of British Airways, market share it improved by 0.50 %

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14 WATER INDUSTRY In 1989 water system of U.K was privatized by the Thatcher government

15 AFTER PRIVATIZATION EFFECTS OF WATER INDUSTRY Prices increases 50% in the first 4 years Pre-tax profits doubled in the first year of the privatization After privatization number of employees decreased by 21.5%. The privatization lead to increase in fees, salaries & bonuses

16 AFTER PRIVATIZATION EFFECTS OF WATER INDUSTRY Instead of improving services and investment, the reduction in staff lead to deteriorating of rating services in many areas The water quality did not improve. Public health has deteriorated and the pollution of environment has increased The water industry is no longer a public service but only business to maximize profits.

17 BRITISH PETROLEUM: Founded by william knox d`arcy in 1909 Established in 1954 by the government of UK British petroleum privatized by the government in order to sold its entire share to company by the prime minister of UK (mrs.thatcher) The government sold its entire share in several slices between ) This act of privatization was copied around the world and she the baroness thatcher initiated the boom privatization as said by the minister of welfare lord Freud who in an earlier as a banker at Sg Warburg.

18 HISTORY OF BRITISH PETROLEUM MRS.THATCHER(13-OCT APR-2013) Fundamental to improving britians economic performance YEAR OF PRIVATIZATION: ( ) 18

19 CEO AND CHAIRMAIN OF BP BOB DUDLEY(CEO) CARL HENRIC SAVANBERG(CHAIRMAN

20 REVENUE:A states annual income from which expenses are met Operating income:us $6.412 billion(2014) profit : us $4.003 billion(2014) Total assets:us $ billion(2014) total equity:us $ billion(2014) Total employes: 85,000

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22 PRIVATE PRISONS The 1 st privately run prison opened for business on 6 th April At present 14 private prisons out of 144. The top private companies are 4s justice services, Serco Custodial services& sudeno % of prisoners population is in private prisons. Combined values of contracts is around 4 Billions. 1/12/2018

23 HISTORY OF PRIVATE PRISONS : Gathering momentum : Introducing competition : Moving back & forth between the public and private 2010-present : Deeping and expandind competition. 1/12/2018

24 MAIN FACTORS The cost of private prison is less than the cost of public prisons The private prisons are safer, living condition are good & successful rehabilition of prisoners into the society The government dependency on private prisons should not be increased because it leads to greater cost To maintain & ensure the quality & transparency government should keep check and balance 1/12/2018

25 G4S PRISONS First company to open and run a private prison They force prisoners to work 40 hours per week HMP Oakwood is biggest jail 1/12/2018

26 The World Bank Group Finance, Private Sector, and Infrastructure Network

27 THE RESTRUCTING AND PRIVITIZATION OF THE U.K. ELECTRICITY SUPPLY The World Bank Group Finance, Private Sector, and Infrastructure Network

28 Central Electrcity Generating Board (CEGB) Before Privitization Playing monoply Low productivity growth Low return on Assets Very expensive Coal & Nuclear Power Emissions of Sulfur dioxide & Nitrogen oxides causing acid Rain & Global warming The World Bank Group Finance, Private Sector, and Infrastructure Network

29 AFTER PRIVITIZATION (1990) CEGB National Power Power Gen Nuclear Electric Thermal Generating Plant National Grid Nuclear Power High-Voltage Transmission Network AFTER SIX YEARS Labour productivity doubled Consumption of coal fell from 74 million ton to 30 million where as the cosumption of gas increased from 1% to 20% Ban on Gas for creating electricity was lifted from EU Over all real unit cost fell by 50% The World Bank Group Finance, Private Sector, and Infrastructure Network

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31 Net benefits of the restruction & privatization Creates more nuclear programs Price of export rises Clean Enviroment Saves cost in Restructuring The World Bank Group Finance, Private Sector, and Infrastructure Network

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