The privatization programme though aids in depicts the net gains to the society when the costs of the operations seem to be outweighing the benefits, it is indicated to be very hard for implementing the policies for the developing countries.
Due to the conduct of the privatization, the corruptions are indicated to be increased with indicating the rise of the political oppositions. Due to this reason, the employees tend to lose their jobs with the politicians who are afraid to have the short-term employment consequences.
Due to privatization, the government also faces the situation for selling off the losers to the buyers for the purpose of earning the capital for the country.
The absence of the strong capital market also becomes a strong point for describing the impact of the privatization, and due to this reason, the state-owned enterprises and the domestic investors are not able to raise enough capital for the purpose of buying them.
The virtual privatization of the government enterprise creates a negative impact on both the employees and the groups of the consumers who are involved in it. The reduction of the cost seems to be affecting the parties in a great way, and thus, the opponents policies are revealed for the restricting the implementation.
These are the reason for which the privatization is illustrated to be a failure programme with consisting of many inappropriate ways which harm the society as well as the government. It also aids in bringing instability in the market with lowering the cash flow in the market.