Explain five circumstances under which the government may find it necessary to privatize some state coporations.

Answer:

-When government wishes to raise finances to provide for other government needs
-When the parastatals are found to be running at a persistent loss and hence draining the tax payers
-When there is a change in the government economic policies which aim at less government involvement in business
-To enhance efficiency in the parastatals due to competition
-To encourage foreign investors to bring in more expertise and capital into the country

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