Under these circumstances,  private sector will earn true ‘profits’ through competition and not ‘rents’ and the justified grudge against the private sector will be minimized. Conclusion Privatization contributes to economic growth through productivity gains, efficient utilization of resources, better governance and expansion in output and employment.
•  There have also been sizeable price increases in areas not directly exposed to a high degree of competition over the past few years. Increases in local authority rates have run well in advance of overall CPI inflation for a number of years. Cost increases in some utilities have also been notable, particularly electricity.