Question

How do private management contracts function as a privatisation measure?

Options

• Management is handed to private players without full ownership transfer

• Private players are prohibited from making operational decisions

• Government and private sector share equal management responsibility permanently

• Full ownership transfers while government retains management control

Answer 1

Private management contracts represent a middle-ground privatisation approach where operational management responsibilities are delegated to private sector players while government retains ownership. This allows efficiency gains without complete ownership transfer.