▁everything ▁should ▁be ▁priv at ized . ▁According ▁to ▁them , ▁market ▁fail ures ▁and ▁natural ▁mon opol ies ▁could ▁be ▁problem atic . ▁However , ▁an arch o - cap ital ists ▁prefer ▁that ▁every ▁function ▁of ▁the ▁state ▁be ▁priv at ized , ▁including ▁defense ▁and ▁dispute ▁resolution . ▁ ▁Pro ponents ▁of ▁priv at ization ▁make ▁the ▁following ▁arguments : ▁ ▁Performance : ▁state - run ▁indust ries ▁tend ▁to ▁be ▁b ureau cr atic . ▁A ▁political ▁government ▁may ▁only ▁be ▁motiv ated ▁to ▁improve ▁a ▁function ▁when ▁its ▁poor ▁performance ▁becomes ▁polit ically ▁sensitive . ▁ ▁In cre ased ▁efficiency : ▁private ▁companies ▁and ▁fir ms ▁have ▁a ▁greater ▁in cent ive ▁to ▁produce ▁goods ▁and ▁services ▁more ▁efficiently ▁to ▁increase ▁prof its . ▁ ▁Special ization : ▁a ▁private ▁business ▁has ▁the ▁ability ▁to ▁focus ▁all ▁relevant ▁human ▁and ▁financial ▁resources ▁onto ▁specific ▁functions . ▁A ▁state - owned ▁firm ▁does ▁not ▁have ▁the ▁necessary ▁resources ▁to ▁special ize ▁its ▁goods ▁and ▁services ▁as ▁a ▁result ▁of ▁the ▁general ▁products ▁provided ▁to ▁the ▁greatest ▁number ▁of ▁people ▁in ▁the ▁population . ▁ ▁Im prov ements : ▁convers ely , ▁the ▁government ▁may ▁put ▁off ▁improvements ▁due ▁to ▁political ▁sens itivity ▁and ▁special ▁interests — even ▁in ▁cases ▁of ▁companies ▁that ▁are ▁run ▁well ▁and ▁better ▁serve ▁their ▁customers ' ▁needs . ▁ ▁Cor ruption : ▁a ▁state - mon opol ized ▁function ▁is ▁pr one ▁to ▁cor ruption ; ▁dec isions ▁are ▁made ▁primarily ▁for ▁political ▁reasons