Answer to Question #130613 in Macroeconomics for Anele Mthombeni

Question

Many 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 may implement privatisation 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.