Friday, 18 March 2011

Advantages of Nationalization

State is regarded most desirable due to the following arguments.

1. Prevention of Monopoly:-
This is a strong argument in favor of nationalization that it abolishes the economic powers from the few monopolists. It thus enables the govt. to take steps for the welfare of the public..

2. Economical Prosperity:-
Government is an position to modernize the industry, communications and transport for the best interest of the nation. So rapid growth of industries causes economic prosperity in the country.

3. Maximum utilization of resources:-
All the oil, gases, minerals and other national resources can be utilized maximum in order to achieve economic development.

4. Development of Backward Area:-
All the regions of the country developed equally under nationalization. Regional and social factors are considered preferential while Government decides regarding the location of new plant.

5. Improvement of Working Conditions:-
Government improves the working conditions of the workers in nationalized industries. The state interested in providing just rates of pay, security of services and other fringe benefits. So peaceful atmosphere can be maintained in the industrial field.

6. Protection of Public Interest:-
Unhealthy competition among the industrialists injuries the interest of the public which can be measures and mitigated by state ownership.

7. Economy:-
It enables the Govt. to achieve the economy in different fields due to the coordination in numerous departments.

8. Promotion of Defense service:-
Nationalization is desired to strength then the specific industries for defense of the country.

9. Centralized Management:-
Centralized management is possible due to co-ordination in nationalized industry. It thus enables the state to solve the problems of organization, capital, labor operation and marketing.

10. High Standard of Living:-
It tends to increase the economic activities of the country which greatly influence the standard of living of the people.

11. Use of Surplus Profit:-
Under the state ownership the profit of the enterprises would go to the public treasury which can be employed for the welfare of the country.

12. Employment:-
Industries are nationalized with a view to creating new posts for jobless persons under a programmed.

13. Uniformity in Services:-
As all the public utility services i.e. water, railway, post office, communications, electricity are connected by the state, so uniformity in quality of services can be maintained.

14. Skilled Services:-
Government may hire the services of outstanding talented and skilled persons due to its largest resources. So all the undeveloped resources of nationalized industries can be utilized for productive purpose by skilled services.

15. Miscellaneous Advantages:-

( a ) Cost per unit may be reduced due to large scale of production.

( b ) Prices of the goods may be lower.

( c ) The role of middleman can be eliminated.

( d ) Research facility can be scientific lines and up to date modern technique and scientific invention can be enjoyed.


Anonymous,  30 April 2011 at 23:43  

Best Answer To This Question

Anonymous,  30 April 2011 at 23:45  

Best Answer To This Question.

Anonymous,  9 February 2014 at 06:22  

thank u so much ! ^^

prime 1 November 2016 at 09:50  

you saved my day mate

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