Background :-

  • Privatization is the process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector.

In Favor :-

  • Employees of private companies are given high salaries, so they are much more motivated to work, and less interested in corruption.
  • Private companies take immediate action on those who take bribe. This creates fear in employees to take bribe.
  • Private institutions take more care to keep them clean and to provide more facilities.
  • Private companies have competitive spirit. So, they offer more features to public.
  • Our country’s GDP increases from the taxes paid by private institutions.

In Against :-

  • There is no guarantee that privatization leads to less corruption, because corruption does exist in the private companies too.
  • The cost of products increases by privatization.
  • If we take private petrol bunks, even though they keep petrol bunks clean, they charge high than the bunks under government control.


                 Corruption does not depend on whether it’s private or government, it completely depends on individual’s attitude. But by privatization, we can reduce corruption up to some extent.

Afterwords :- What are your thoughts on this topic? Feel free to express your opinion in the comment section below.

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  • Tinku paul, Sep 14, 2020 @ 7:05 am Reply

    According to me privatization leads to less corruption. Yes its true but its depend on individuals attitude. In private organizations people gets afraid any time they can loose the job , any untoward ,authority can retrench. Not only that he has to perform as long as he is in private organizations. He has to motivate first his performance. In private organizations authorities are very strict, company has to incur profit otherwise they will stop their business. But govt organizations who will take care, sometimes with subsidy govt can run any organizations. From top to bottom corrupted ,very few peoples are there very honest. They do the bad work after that may be retired or transfer when the discripsncy will come into the light . Many people knows this is govt organizations so I am getting chance I should take advantage but in private organizations people will not get chance but rather they are busy to take care of their job because of any time can axe.

  • Scruff, Jan 30, 2018 @ 1:48 pm Reply

    Yes with current scenario in india privatization will help to reduce corruption, because companies are inclined to increase their revenue and that can happen only when they complete one project nd get another again and over again without indulging into corruption activities. So competition is in market for private companies to make them focused and not to get divert towards corruption. But privatization is not permanent solution because when competition will get end once then private companies also will get divert and start finding ways to get extra revenue.
    As we know satyam scandal of 7000crore. So only one solution can reduce corruption in significant amount when private companies and public sector companies will come in competition and creat a balance in a market. This time public sector is omnipotent and having no competition with private companies and private companies are in just growing stage in india so privatization will need to be more promoted in indian market.

  • Gaurav Bali, Mar 18, 2016 @ 12:20 pm Reply

    These are the people like us who get corrupted not the public or private sectors. So, it’s all about one’s mindset towards the job and the other who wants to get the work done. Everything can’t be privatized and privatization is not the only solution.
    We can think on the lines of Digitization wherein everything will be online and transparent that will lead to good end results. Moreover, Government and people have to work together to sort out issues like Corruption as it starts from us.

    • GD Ideas, Apr 1, 2016 @ 8:07 am Reply

      That’s true.

  • Information, Jul 23, 2015 @ 6:38 am Reply

    Nice points for GD

  • Deep Pandey, Apr 30, 2014 @ 8:04 am Reply

    good………………………it helped me a lot…

  • Anumita, Mar 29, 2014 @ 11:50 pm Reply

    Corruption thrives in the economic system of India from the grass root level. However corruption in private firms is difficult because every firm has certain rules and policies which have to be followed with complete responsibility. Companies do take strict actions against employees who indulge into corruption. Private firms provide greater opportunities to earn higher salaries and incentives and the employees have greater amount of work to perform throughout. In public sector jobs are more confined and since it is a vast structure it gets difficult to catch hold of all the corrupt activities taking place. Moreover they have lesser responsibilities and fewer opportunities of promotion so for earning more money they start asking for bribes and adopt other corrupt measures.
    Private firms are functioning in a highly dynamic environment which is getting competitive day be day and since today's market is consumer driven it becomes necessary for the companies to offer good products at reasonable prices or else survival gets difficult for them.
    It definitely doesn't mean privatisation would totally eliminate corruption. When the top officials get involved in such activities it is rare to get caught by others though some scams have come into light in a few years. Private companies are profit-driven. If we expect railways to become private then we also need to prepare ourselves to pay higher price for travelling in trains and then it will no longer remain affordable for a big section of society. Another activity that companies get involved into is the the insider trading. Though it is not considered a criminal offence it is an economic offence and is illegal as it is against the interests of investors.
    So to reduce corruption it is important for people to change their mindset more than anything else. Privatisation may reduce corruption but again it will also have some adverse effects on economy.

  • Amol Chillal, Jan 14, 2014 @ 5:31 am Reply

    Thanks. It is very helpful as given in short and appropriate manner.

  • Naughty, Jul 26, 2013 @ 6:29 am Reply

    Money is the most important factor of being corruption,we can seen peoples are going in govt sector for their job security,they knows very well once they get the govt job in rare case they will get trouble either they are doing there own responsibilities well or not and this thinking change the perception of govt employees.We know that to get a govt job is very difficult task but some times it is very easy for some people using some unethical ways like bribe,power an so on.Once peoples got the job in govt. sector the same thing they applied on other.
    On the other hand you can seen that in private sector there is no approach work if u have potential then you can get the job.For getting job you have to make yourself means you have to improve your quality and then you can find the job.Means its total up to you that if u have better potential you can get better responsibilities.
    As my point of view privatization can remove the corruption

  • Harshit Agarwal, Jan 9, 2013 @ 3:18 am Reply

    As per my opinion private companies do obtain licenses and other facilities and services by paying lots of bribes as we saw in case of coal mines and 2G spectrum case.They do provide best facilities but they reduces corruption this could not be said

  • jenish raina, Nov 9, 2012 @ 3:44 pm Reply

    As we know that many people want to get job in government sectors. There are so many hidden factors are responsible such as less/ no work presser, Job security, bribe etc. out of that many person want to joint government sector in order to become richest person during very short period of time by engaging in bribe because there is not any job presser on employees and fully job security is there, because of absent of law regarding corruptions and people who are recruited are also not well educated some times employees are selected on the basis of their references. So if any person wants to complete their government task then person should have to give bribe to government servant otherwise it is impossible to complete task. The reason is only that government sectors are not profit motive and there is no need to measure efficiency and effectiveness of any sectors so employees become lazy. While on the other hand Private sectors are profit motive and they believed in providing best services with full efficiency and effectiveness otherwise they will not survive for long period of time. And people working in private organizations fear from firing and they always work hard. Employees of privatizations believe in self-reputation rather than money/bribe. So privatization leads less corruption.

  • Anonymous, Oct 12, 2012 @ 2:47 pm Reply

    from my point of view privatisation is not a solution , but in some extent it can reduce corruption. Corruption is associated with a single human not the organisation. so it can be minimised through propoer control and strict rules.
    In private sectors there are tight rules, everyone has to be follow these rules, so they are mainly focused to their works.Private companies have competative spirit, so they are more consious about public feelings .

  • parth, Aug 20, 2012 @ 3:00 pm Reply

    for my point privatization some what lead to reduce corruption because, in the privatization the aim is only profit so the they are not prefer any problem according to product. so suppose any people would issues again product so directly effects the organization value and his they are doesn't accrue the issue about product like quality so the organization has no consult with the corruption sooo conclusion that the private sector has somehow reduce the corrupatio

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