Introduction

The discussion is focuses on “Privatization”. It also includes the Forms of

Privatization, Advantage and Disadvantage of Privatization, And Companies
that has been Privatized in the Philippines.

Analysis
Privatization occurs when a government-owned business, operation, or
property becomes owned by a private, non-government party. Note that
privatization also describes the transition of a company from being publicly
traded to becoming privately held. This is referred to as corporate privatization.
Privatization is the purchase of all outstanding shares of a publicly traded
company by private investors, or the sale of a state-owned enterprise or
municipally owned corporation to private investors.
Form of Privatization, Share issue privatization: shares sale on the stock
market. Asset sale privatization: asset divestiture to a strategic investor, usually
by auction or through the Treuhand model. Voucher privatization: distribution of
vouchers, which represent part ownership of a corporation, to all citizens,
usually for free or at a very low price. Privatization from below: start of new
private businesses in formerly socialist countries. Management buyout or
employee buyout: distribution of shares for free or at a very low price to workers
or management of the organization. The choice of sale method is influenced by
the capital market and the political and firm-specific factors. Privatization
through the stock market is more likely to be the method used when there is an
established capital market capable of absorbing the shares.
The advantages of privatization are the transferring government-owned assets
to the private sector are increased efficiency and profits, largely because
competition incentivizes innovation and improvement. The disadvantages of
privatization are decreased regulation and government revenue. Institutions not
owned by the government do not directly deliver the government revenue, and
these institutions also have more freedom to pursue their own interests, which
may negatively affect consumers, without government control.
Companies that have been privatized in the philippines are, petron corp.,
national steel corp, Philippine associated, Philippine Phosphate, semirara coal,
luzon integrated, Philippine airline and National sugar.

Conclusion
Privatization may improve efficiency, provide fiscal relief, encourage wider
ownership, and increase the availability of credit for the private sector.
Privatization improve the operational efficiency of Public Enterprises. And it also
develop competitive efficiency in the industries .