means of achieving gains in economic efficiency, given the extensive

prevalence of poor economic performance of public enterprises in many

countries and limited success with their reform

mechanism for improving the fiscal position, particularly in cases where
governments have been unwilling or unable to continue to finance deficits in
the public enterprise sector

public utilities is transferred from public to private management, then we
would expect an increase of revenue to the privately run firm, which the
government should expect to tax in order to replace some of the revenue lost
in selling off the enterprise.

Lack of Political Influence

Provides consumers with more choice.

Short Term view.
A government many think only in terms of next election. Therefore, they may
be unwilling to invest in infrastructure improvements which will benefit the
firm in the long term because they are more concerned about projects that
give a benefit before the election.