c) Disinvestment

 Disinvestment refers to the process of selling off or reducing government's share in a public sector enterprise or divesting from public assets such as land, buildings or other properties. It is a strategy to reduce the financial burden on the government, improve the performance of public sector enterprises and encourage private sector participation in the economy.

The objective of disinvestment is to transfer the ownership and control of public sector enterprises from the government to the private sector, which is expected to bring in greater efficiency, productivity and profitability. The government can also use the funds raised through disinvestment to bridge the fiscal deficit, finance social welfare programs or invest in infrastructure and other development projects.

There are different methods of disinvestment, such as initial public offerings (IPOs), strategic sales, sale of minority stakes, and exchange-traded funds (ETFs). In an IPO, the government sells shares of a public sector enterprise to the general public, while in a strategic sale, the government sells its controlling stake to a private entity. In a sale of minority stakes, the government sells a small portion of its stake to private investors, while in ETFs, the government creates a basket of public sector shares and sells them to the public.

Disinvestment has both advantages and disadvantages. On the one hand, it can improve the efficiency and competitiveness of public sector enterprises, reduce the government's fiscal burden and promote private sector growth. On the other hand, it can lead to job losses, reduced social welfare spending, and concerns about national security and public interest.

Disinvestment has been a controversial issue in many countries, particularly in developing economies where public sector enterprises are seen as a symbol of national pride and sovereignty. However, the trend towards disinvestment has been growing, as governments seek to reduce their financial burden and promote economic growth through private sector participation.

In conclusion, disinvestment is a strategic tool used by governments to reduce their financial burden, improve the performance of public sector enterprises, and encourage private sector growth. While there are challenges and controversies associated with disinvestment, it remains an important policy option for governments seeking to promote economic growth and development.

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