Essays on The Government of Australia Should Privatise Medibank Case Study

Download full paperFile format: .doc, available for editing

The paper "The Government of Australia Should Privatise Medibank " is a good example of a business case study.   Australian organisations strive to be responsive or anticipate shifts in a business setting. Firms constantly adjust their strategies and they realise that intended or planned strategies may fail to pan out in future while the unanticipated prospects and events instigate emergent strategies. Governments, by contrast, are accountable for establishing competition rules and regulate strategic activities adopted by the private sector. Governments intend to attract business actions in their regions besides making the business more profitable.

However, governments must guarantee fairness and prevent monopolistic conducts. A crucial aspect of blueprints that impacts competitiveness includes the government rule’ s stability. A constant change of regulations and rules is not attractive to business. Regulatory blueprints in Australia are changed in only minor means, followed by changes instigated by reserved government investigations, endorsed through task forces appointed by the government (Capling 2003, p. 374). Privatisation entails the procedure of transferring an industry or enterprise from public ownership to private ownership. It involves denationalisation or disinvestments of government-owned property or assets to private or individual investors.

The government of Australia should privatise Medibank to promote increased competition within the private health insurance sector, lower economic burden, increase efficiency, lower political interference, besides driving improved health and value upshots for the people of Australia. According to Fairbrother (2002 p. 8), privatisation in Australia has developed via two phases where the first phase was led by the commonwealth government where state business was corporatized and businesses sold. The second phase entailed restructuring of large state monopolies that did not function in competitive markets. In the 1990s, the Australian privatisation program became one of the biggest programs in OECD countries (Fairbrother 2002 p. 8).

The drivers for privatisation include deteriorating set of economic links, operation of the national economy, a series of organisational critical review and a need to modernise the public sector. The proposals of privatisation were developed at the federal level and put into practice by states where states governments tried to promote their revenue sources via selling their assets. Privatisation also supported the restructuring of state corporations. In Australia, there is a widespread multinational involvement in privatised waste management, health and energy areas. While privatisation comes with numerous advantages, it holds major effects for unions and workforce management because these aspects experience the distinctive and new set of circumstances.

For instance, multinational ownership introduces tenuousness in dealings amid the locally-based centres and globally-based employers. Following privatisation, unions, local managers and workers hold no immediacy that the government ownership provides. In numerous areas of public service prerequisite, federal ministers and representatives of state government do not plan an apparent and direct role in the conduct and organisation of the privatised businesses.

The government does not hold any role in bargaining and negotiations of conditions and terms of employment. Management privatisation is given extra impetus in Australia through agreement amid federal government and Australian states (OECD 2012, p. 119). National Competition Policy, a series of inter-governmental agreements intends to open up segments of the Australian economy specifically those that governments function to greater competition. The major elements of NCP relate to infrastructure reforms, public monopolies reforms and competitive neutrality.

Reference

List

Aulich, C 2011, ‘It’s not ownership that matters: its publicness’, Policy Studies, 32, 3, pp.199-213.

Capling, A 2003, ‘Democratic Deficit, the Global Trade System and 11 September’, Australian Journal of Politics & History, 49, 3, pp. 372-379.

Fairbrother, P 2002, Privatisation, globalisation, and labour: Studies from Australia. Australia: Federation Press.

Jain, T 2002, Economics for engineers. London: FK Publications.

Mcllroy, J 2014, Government moves to sell Medibank private, Green left Weekly, available from https://www.greenleft.org.au/node/56202 (22 April, 2014).

Medibank 2014, Medibank, Available at http://www.medibank.com.au/about-us/privatisation/ (22 April, 2014).

Moulton, S., Wise, C 2010, ‘Shifting boundaries between the public and private sectors: Implications from the economic crisis’, Public administration review, 70, 3, pp.349-360.

OECD, 2012, OECD economic surveys: Australia 2012. Sydney: OECD Publishing

Rainey, H 2009.Understanding and managing public organizations.4th ed. San Francisco, CA: Jossey-Bass.

Rainey, H., Bozeman, B 2000, ‘Comparing public and private organizations: empirical research and the power of a priori’, Journal of public administration research and theory, 10, 2, pp. 447-469.

Download full paperFile format: .doc, available for editing
Contact Us