Answer to Question #130369 in Macroeconomics for Kone mulalo

Question

Economists argue that the South African government should implement a policy of

privatisation.

Argue in favour of a policy of privatisation.

Answer 1

The government of South Africa believed that the purpose of privatisation was to improve the performance of the economy through effective use of production factors; optimal functioning of market forces and increasing of the percentage of net fixed investment in the private sector.