Privatisation Case - Etosha National Park - Natural Resources

1. Introduction

Natural resources is what keeps a country functioning. Whether the natural resources are nature reserves, minerals, water or fisheries, if it is not probably managed it prevents the country from growing to its full potential and disadvantage the county as a whole. Looking at the different management systems, private and government, you can distinguish which system is the best and which one will manage the natural resources to its full potential.

2. Debate

Comparing management of natural resources by private institutions and by the government, it is possible to see whether the government has any ground to stand on when they nationalize natural resources. Taking two institutions that is very similar but is managed by the government and a private institution, it is possible to see the advantages and disadvantages of both the private sector management and government sector management.

2.1 Government

Etosha National Park, a government owned nature reserve in Namibia, is one of the largest national parks in Africa with a size of 22 912 km² and Etosha Pan covering 21% of the National Park (Republic of Namibia, Ministry of Environment and Tourism). Etosha National Park was started in 1907 and was always a government owned nature reserve.

Etosha National Park has existed more than 100 years it has become a household name for Namibians as well as people around the world, as a result the government don't have to do any marketing or a bare minimum thereof. The Park has also put a small country as Namibia on the map as a result more tourist has come in order to explore the exquisite country.

As a result of being managed by the government the National Park doesn't have any funds. They mostly run in debt and the quality is not what it used to be. The maintenance of the facilities is the bare minimum and they rely on charity organizations to fix road signs, fences and waterholes. Because it is a government based national park they are not able to obtain specialized people with the brainpower to further wildlife and the quality of the park. Because of the poor management of the staff they have little drive and don't have pride for their working environment.

On the other side Etosha create many working opportunities for the local people. They need an excessive amount of manpower in order to keep the nature reserve functioning. The salaries are paid by the government so they don't need to worry how many workers they can employ. Etosha National Park is also unable to close even if it is running in debt, it will be supported by the government. Money is no obstacle and even if they are not managed probably, Etosha National Park will never be able to close. This ensures us that Namibia will never lose an enriching part of itself .

2.2 Private

Erindi Private Game Reserve, is a privately owned game reserve in Namibia, more than 71 000ha. It was a local farm turned into a game reserve and is one of the largest private game reserves in Africa.

Erindi is a privately owned nature reserve as a result they don't get help from the government and don't have to follow the strict policies and rules set forward by the government. As a result they can employ anybody they want, this includes motivated, well paid and ambitious workers. They are also enabled to pay them a bigger salary and provide more advantages. They also invested in their local community, by allowing the local villagers to grow vegetables for the lodge restaurant they also provided computer training and rifle training, to further their employees careers. They also have excellent management enabling them to utilize their money to the fullest, providing good roads, fences, housing facilities and maintenance