privatization
Sign in to savePrivatization (rendered privatisation in British English) can mean several different things, most commonly referring to transitioning something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when a heavily regulated private company or industry becomes less regulated. Government functions and services may also be privatised (which may also be known as "franchising" or "out-sourcing"); in this case, private entities are tasked with the implementation of government programs or performance of government services that had previously been the
AI overview
Privatization refers to the process of transferring ownership or control of something from the government (public sector) to private companies or individuals, or reducing regulations on private businesses. It matters because it can affect how essential services and government functions are delivered, who profits from them, and how much oversight exists over their operations.
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Article
20 sectionsContents
- Etymology
- Definition
- History
- Pre-20th century
- 20th century onwards
- Reasons for privatization
- Forms of privatization
- Secured borrowing
- Results of privatization
- Foreign privatization
- Contrasting cases in Eastern Europe: Romania and East Germany
- Opinion
- Support
- Opposition
- Economic theory
- Privatization of private companies
- See also
- Notes
- References
- External links
Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to transitioning something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when a heavily regulated private company or industry becomes less regulated. Government functions and services may also be privatised (which may also be known as "franchising" or "out-sourcing"); in this case, private entities are tasked with the implementation of government programs or performance of government services that had previously been the purview of state-run agencies. Some examples include revenue collection, law enforcement, water supply, and prison management.
Another definition is that privatization is the sale of a state-owned enterprise or municipally owned corporation to private investors; in this case shares may be traded in the public market for the first time, or for the first time since an enterprise's previous nationalization. This type of privatization can include the demutualization of a mutual organization, cooperative, or public-private partnership in order to form a joint-stock company.