Tuesday, May 19, 2009

1980s-increase the liability of public and private sector, comparative advantage

how to increase the ability of public and private sector?

1. to increase the ability in public and private sector in terms of services.

  • government must give good services to the public. but government not really have ability to give better services to the public. so, government need to coorperate with the private sector. when the government coorperate with the provate sector, the services are more systematic better than before. in the same time, both parties will get the benefit from their coorperation (comperative advantages)
  • eg: KTM at the beginning of the era 1980s, public cannot survive to give good services to the public. so, public need to find good ways to solve the problems. the prime minister on that era, he tried to convert the KTM to privatization. this system seem give the more advantage for the services. it is because privatization can give better service than before. so, this coorperation increase the ability in private and public sector services in KTMB.

2. to increase the ability of public and private sector in terms of financial.

  • as we know, every organisation need strong financial capability to maintain their business. so, when there are coorperation between public and private sector, they have strength in terms of financial. they also can reduce the investment from the other invators, increase the profit and maintain their management.
  • eg: PROTON give financial contribution to the country, even though many parties are questioning of the existance of PROTON. it shows that our country has ability to produce our own products. infortunately, the financial of PROTON has not in the good condition. so, our PM on that era find the goods ways to solve the problem. the convertation to make the PROTON from private sector to public sector. the government can inject the financial into the PROTON. so, the PROTON can service to continue their business until now.

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