Having private industry take over the essential infrastructure in a country is a double-edged sword, although many might think it's all a shade of bad, but that's not entirely the case, because privatizing most of this infrastructure goes a long way in ensuring the quality of those facilities and their routine maintenance, which helps prolong the services such provide to the people; however, it doesn't mean it's entirely good, as it also has its downsides, and in this article I'll be exploring both sides of these and then conclude with my own opinion.
Like I said, privatizing public infrastructure isn't entirely bad, especially in countries where the government ministry that ought to take charge of them isn't doing enough, and some of such public infrastructure that can possibly be privatized and go a long way in improving them in countries like mine are roads, water supply systems, electricity grids, airports, healthcare facilities, railways, public schools, universities, public transport, parks, recreation facilities, tourism attractions, and many others, and for a nation like mine, where all of these are being mismanaged, having private industry take control will help improve it, and below I highlighted some of the good sides of privatizing these infrastructures.
The Good Side
Number one of the good that comes from privatizing these ministries is efficiency and maintenance, with such infrastructure being privatized. It'll ensure that most of these facilities are well built and maintained, as these private companies will understand not doing it well will lead to them having to spend more of their funds to redo it. It'll also aid a swift maintenance culture for most of this infrastructure, from fixing potholes swiftly to indulging in routine checks and fixing.
Another is the innovation and competition spirit it'll bring, especially when such infrastructure is given to different organizations; it'll bring about healthy competition that makes one private sector want to stand out above the other, which in the process leads to innovative and top-notch construction and service discharge, not forgetting how it'll lead to less government waste, like a nation like mine where public funds are mismanaged; privatization will reduce corruption and improve accountability.
The Bad Side
On the other hand, the downside of privatizing these infrastructures is the high cost for essential services. Privatizing these public infrastructures might lead to having to pay a toll for almost everything once you step out of your house or face repercussions of being cut off from the possibilities of using these facilities, such as roads, water, healthcare, and the like, making essential services a luxury; also, it leads to unequal access to facilities. This is terrible and why it's not advisable to privatize this infrastructure, because poor communities would not be able to afford these facilities, making low-income individuals and areas become neglected and worsening social inequality in society.
Another reason why many are against privatizing public facilities is because it can lead to monopolies and exploitation. Take, for instance, the time Dangote was accused of trying to monopolize the cement industry in Nigeria, as he had dominated the industry, leading to him hiking the price of cement without anyone being able to question him, and these are more or less exploitations of the people.
My Opinion
With both sides being heard and seeing the positives and negatives of privatizing public service, here is my opinion about it, and it's the fact that we must find a way to mix private and public management together. I believe mixing both together has its way of ensuring proper management of infrastructure, and by mixing, I don't mean they should work hand in hand, because doing that can lead to both parties working hand in hand to loot public funds, so what I mean is that the government should still be the owner of such infrastructures, while they should then employ different private sectors who are experts in related fields to manage them appropriately.
Also, if at all the government wants to give out these responsibilities of management to private sectors, then such shouldn't be given to one company alone so as to avoid monopolizing the market; giving the responsibility to many organizations will lead to efficiency and competition in the industry, and overall it must be made sure that people aren't cut off from the possibility of accessing public infrastructure regardless of their financial status.
Having private industry take charge of the management of these infrastructure will go a long way in improving the efficiency of those infrastructures, because presently it's disheartened how our national grid keeps spoiling leading to unstable electricity, how roads are getting spoilt and having multiple potholes without them being fixed and several other places where facilities ain't being maintained, private companies will change the situation of things and it's a good steps forward, but then should be given sole ownership to avoid unnecessary hiking of cost of those services for their personal gain.
All photos are taken and edited on canva.
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Balance makes a big difference, without it we cannot see things improve, I found it interesting that you included in your text the issue of not monopolizing the market, this is something essential, because if not, nothing changes.
That's absolutely correct, finding a way to strike a balance is the best way forward.
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Your opinion seems like the best way out. That way the benefits of privatisation are gotten while the disadvantages are reduced. Like a win win situation
Yea that's just it, we've to find a middle ground that works for everyone.
Having private Industries take over providing basic amenities for the public will give the public the value for their money but it will always come at a high cost.
Yeap, but can be worked upon.
It's indeed a double edged sword and nobody knows clearly what will happen if such a thing happen. I think if those asset become private but government can set some limitations can bring good benefit in long term.
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I agree that private companies can help improve services because they focus on quality and maintenance. But at the same time, if everything is privatized, it might become too expensive for many people to afford. I like your idea of a balance, letting private companies manage things while the government still owns them. That way, we can have better services without making life harder for poor communities.