Privatisation and Commercialisation SS3 Commerce Lesson Note

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. Define privatisation and commercialization
2. State the advantages and disadvantages of privatisation and commercialization

INSTRUCTIONAL TECHNIQUES: 

• Identification, 
• explanation, 
• questions and answers, 
• demonstration, 
• videos from source

INSTRUCTIONAL MATERIALS: 

• Videos, 
• loudspeaker, 
• textbook, 
• pictures

NOTE

PRIVATISATION

The transfer of ownership, property or business from the government to the private sector is termed privatisation. The government ceases to be the owner of the entity or business. The process in which a publicly-traded company is taken over by a few people is also called privatisation. 

ADVANTAGES OF PRIVATISATION

1. The government generates more revenue during the implementation policy
2. it brings about efficiency and productivity in the business
3. It leads to innovation and high level of creativity in the business
4. It gives consumers an increased range of choices
5. it widens the capital market

DISADVANTAGES OF PRIVATISATION

1. it leads to mass retrenchment of workers
2. it leads to inflation
3. it lowers the standard of living of the citizens
4. it leads to an uneven distribution of income 

COMMERCIALIZATION

It is the running of a government-owned organisation to generate profits. The ownership and control of the organisation will still be under the government 

ADVANTAGES OF COMMERCIALIZATION

1. it generates funds for the government
2. it makes the enterprise to be self-sufficient
3. it reduces the government’s expenditure
4. it promotes accountability
5. it enhances the competitiveness of such commercialised enterprises

DISADVANTAGES OF COMMERCIALISATION

1. it may lead to uneven distribution of wealth
2. it may lead to the exploitation of the consumer
3. it may lead to a reduction in the workforce
4. it may lead to the increase in the cost of goods and services 

EVALUATION:   

1. Define privatisation and commercialization

1. State the advantages and disadvantages of privatisation and commercialization

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively