4.7. Privatization and Contracting Out

In an era of liberalization, there is economic logic to privatize those state owned enterprises which are either running in loss or in the tertiary sector of the economy such as hotel, tourism, engineering and textile sector, where they cannot compete with private sector and are a big drain on national resources.

♤ There is a strong case for privatization of services like municipal street cleaning, garbage collection, power distribution, city transport etc.

♤ Experience has shown that increasing use of competition in the delivery of public services, including competition between public and private sector providers has improved cost effectiveness and service quality.