Privatization

ˌpraɪvətɪˈzeɪʃən

nounmediumCommonBusiness

Definitions

1

The process of transferring ownership of a business, enterprise, agency or public service from the public sector (a government) to the private sector (businesses).

ˌpraɪvətɪˈzeɪʃən

nounneutralmedium
Business

The act of transferring ownership from public to private

The privatization of the water supply led to higher prices for consumers.

💡 Simply: Imagine the government owns a school. Privatization is when they sell it to a private company, and the company then runs the school.

👶 For kids: When something that the government owns, like a park or a school, gets sold to a company and they run it.

More Examples

2

Opponents of privatization argue that it often leads to reduced services and higher costs.

3

The economic reforms included the privatization of several state-owned industries.

How It's Used

Economics

"The government is considering the privatization of the national railway system."

Politics

"Debate continues over the privatization of healthcare services."

Idioms & expressions

creeping privatization

A gradual or incremental process of transferring public services or assets to private ownership, often through small steps or subtle changes.

"Critics warned of creeping privatization in the healthcare sector, as private companies began to take over more and more functions."

reverse privatization

The process of returning a privatized asset or service to public ownership or control.

"The government considered reverse privatization of the railways due to rising fares and declining service quality."

From French *privatisation*, from *privatiser* ('to privatize'), from *privé* ('private'). The process of transferring ownership of a business, enterprise, agency or public service from the public sector (a government) to the private sector (businesses).

The term gained prominence in the late 20th century with the rise of neoliberal economic policies.

Memory tip

Think of taking something that belongs to everyone (public) and making it belong to one person or a company (private).

privatisationprivateization

Usage

20%Spoken
80%Written