Ratio Dependency Th. Fisher Clark Harrod-Domar Lewis Rostow Demo. Popn Pyramids Price Movts Privatisation Causes of Growth Causes of Infl. Since coming to power in 1991 the government of President Chiluba has undertaken a major programme of privatisation.
Privatisation is a supply side approach to bringing about increases in economic growth.
Supply side economics is the application of microeconomic policies intended to increase the overall supply of goods and services. By increasing the efficiency of the factor inputs in the production process output should increase. This should have the effect of shifting aggregate supply to the right and increasing the potential level of output as shown in the diagram below. Breaking down monopolies into more competitive industries introduces competition into the goods markets. Enables the privatised firms to compete for finance on the private capital markets both home and abroad.