Research On Privatization Of State-owned Enterprises

Privatization is being more agenda in the present era of the economic development in the developing and developed countries.The economic transformation on the different modalities of the economic development.As on the privatization has the traditional relationship between the state and the productive sector.The lack of development of the private sector,the prevailing economic dogma of state intervention and the availability of foreign aid in the form of turnkey projects have heavily contributed to state-ownership of business and industries in Nepal.The growing conviction that the private enterprise system can cure sick economies was also a motivating factor in privatization.In some countries,the political and economic agendas of both the government and the citizenry converged to produce an urgent call for privatization.In other countries,economic priorities dominated political philosophies,particularly where there was strong support for deregulation and liberalization.Privatization was considered essential since the government could sell SOEs in a range of sectors,including banking,insurance,hotels,telecommunications,manufacturing,pharmaceuticals,chemicals,cement,and farm machinery.Nepal as the developing countries the public enterprises being the one of the most transformation after the economic changes.Due to the changes in the economic state of the world the developing country also tend to change on the economic trend.The government intakes the rules for the modifying the government enterprises to the public as benefits to them.The foreign affairs and relations also being attached due to the globalization.Now present days the privatization being a global change.With the public affairs and motivation towards the private enterprises the privatization is developed.Privatization is an essential and effective instrument for transforming state owned enterprises into private firms or companies.Private ownership must be effective in order to develop various institutions,since it requires legal institutions in order to clarify and protect the ownership as well as related rights and duties.Conversely,development of such institutions,say establishment of legal ownership rights and mechanisms to enforce these rights,would promote private proprietorship much further.