Final answer:
President Amoto can privatize government-owned businesses through issuing government contracts, selling off enterprises, providing vouchers or grants to private entities, but must weigh the potential efficiency gains against possible setbacks like increased prices and socio-economic challenges.
Step-by-step explanation:
Options for Privatizing Government-owned Businesses
President Amoto has several options for privatizing government-owned businesses. These include issuing government contracts to private companies for service provision, similar to initiatives pursued during President Bill Clinton's and George W. Bush's tenures.
Another approach is through economic liberalization, which involves divesting or selling off state-owned enterprises to private entities, as seen in India's reform in the 1990s that targeted airlines, telecommunications, and electric power among others. Additionally, Amoto could consider distributing vouchers that allow citizens to access services through the market, or providing government grants to private sectors to administer programs.
Despite potential efficiency gains, privatization can lead to challenges such as higher prices, reduced access to services, income inequality, and public pushback, especially if the benefits are concentrated among a wealthy few. The process can also result in initial economic hardships, corruption, and political unrest. Therefore, careful planning and consideration of both the economic and social impacts are critical for a successful transition towards a market-oriented economy where private firms are given more autonomy in decision-making.