it was stated in the examiner’s article that “nationalised companies are tend to feature less prominently in more developed countries.It is generally believed that the profit motive, created by the agency relationship creates and stimulates greater economic efficiency than in the nationalised companies.”
May I know what is the message that the examiner is trying to convey?
Only that, following the Margaret Thatcher line of thought, nationalised industries tended to be a hive of inactivity with no / little incentive to improve economy, efficiency, effectiveness. By “privatising those industries, Thatcher created / allowed the companies to create an environment where the British taxpayer, instead of funding inefficient industries, was able to benefit from the commercialisation of the industries such that the government received in tax revenue huge amounts of tax instead of having to subsidise and support the lame dogs which the previously nationalised industries had allowed themselves to become
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