The first argument presented by this essay is that state owned enterprises must be privatised

because they are running at a loss. Privatising these state owned enterprises will make it
impossible for government officials to misuse the companys’ funds. For instance according to
the Free market foundation (2019), one of the most successful results of privatisation is the now
famous Cape Town Waterfront, it has converted the Cape Town harbour into a world class
recreational and commercial tourist attraction. It has a board of directors drawn largely from the
private sector. According to Adam (1992;116), it has been observed that Jamaica has undertaken
a substantial programmed of privatisation and this breath of experience offers a fascinating
wealth of lessons. Some who are against privatisation of state owned enterprises would argue
that the regulation of corruption in both private and public sectors is limited, hence it is
impossible to eradicate corruption. However, it has been shown by Marco Arnone (2014;155)
that the market consists of set of rules, institutions and agents that interact mutually to achieve
effiency in the management of resources, therefore privatisation of state owned enterprises will
eradicate corruption in these enterprises.

References

Free Market Foundation (2019). Examples of successful privatised enterprises. [online]

Available at https://free market foundation.com [Accessed 3 Sept. 2019]

Adam, C., William, C & Ministry P. 1992 Adjusting Privatisation

Arnone, M & Borlini, S. 2014 Corruption Economic Analysis and International Law.