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Which of the following is a possible criticism of privatisation?
Question

Which of the following is a possible criticism of privatisation?

A.

Expansion of bureaucracy and efficiency in public enterprises

B.

Excessive government interference into private businesses

C.

Limited access to essential services for marginalised populations

D.

Reduced competition and innovation in the market

Correct option is C


The correct answer is (c) Limited access to essential services for marginalised populations.
· Criticism of Privatisation: One of the significant criticisms of privatization is that it can lead to limited access to essential services for marginalized populations. When essential services such as healthcare, education, and utilities are privatized, they may become more expensive and less accessible to lower-income or marginalized groups. Private companies prioritize profit, which can lead to cost-cutting measures, reducing the quality or availability of services for those who cannot afford higher prices.
Information Booster:
Expansion of bureaucracy and efficiency in public enterprises:
· Typically, privatization is expected to reduce bureaucracy, not expand it. This option is not a common criticism of privatization.
Excessive government interference into private businesses:
· This is more of a criticism of government regulation, not privatization. Privatization often reduces government interference.
Reduced competition and innovation in the market:
· While privatization can sometimes lead to monopolies, it is generally argued to increase competition and innovation. However, in some cases, if privatization leads to monopolies, it could reduce competition.

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