Browse Definitions:
Definition

privatization

Contributor(s): Ivy Wigmore

Privatization is the process of transferring an enterprise or industry from the public sector to the private sector

The public sector is the part of the economic system that is run by government agencies. Privatization may involve either sale of government-held assets or removal of restrictions preventing private individuals and businesses from participating in a given industry. 

Privatization is an ongoing trend in many parts of the developed and developing world. Proponents of privatization maintain that the competition in the private sector fosters more efficient practices, which eventually yield better service and products, lower prices and less corruption. On the other hand, critics of privatization argue that some services -- such as health care, utilities, education and law enforcement -- should be in the public sector to enable greater control and ensure more equitable access. 

The term has alternate meanings within business and finances. For example, if an individual or organization purchases all the stock in a publicly-traded company, that effectively makes it private, so that process is sometimes described as privatization. However, in contrast to the primary understanding of privatization, the company in question is in the private sector to begin with and remains there. 

This was last updated in August 2013

Join the conversation

2 comments

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

This ddefinition makes me clear about what is privatisation. Thank u..
Cancel
they say dat privatilization is the transfer of ownership or idustry fyom public sector to private sector
Cancel

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • botnet

    A botnet is a collection of internet-connected devices, which may include PCs, servers, mobile devices and internet of things ...

  • Web application firewall (WAF)

    A Web application firewall (WAF) is a firewall that monitors, filters or blocks traffic to and from a Web application. WAFs are ...

  • MD5

    The MD5 hashing algorithm is a one-way cryptographic function that accepts a message of any length as input and returns as output...

SearchHealthIT

SearchDisasterRecovery

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

  • disaster recovery as a service (DRaaS)

    One approach to a strong disaster recovery plan is DRaaS, where companies offload data replication and restoration ...

SearchStorage

  • compact disc (CD)

    A compact disc is a portable storage medium that can be used for recording, storing and playing back audio, video and other data ...

  • secondary storage

    Secondary storage is used to protect inactive data written from a primary storage array to a nonvolatile tier of disk, flash or ...

  • VRAM (video ram)

    VRAM (video RAM) is a reference to any type of random access memory (RAM) used to store image data for a computer display.

SearchSolidStateStorage

  • SSD RAID (solid-state drive RAID)

    SSD RAID (solid-state drive RAID) is a methodology commonly used to protect data by distributing redundant data blocks across ...

  • Tier 0

    Tier 0 (tier zero) is a level of data storage that is faster, and perhaps more expensive, than any other level in the storage ...

  • PCIe SSD (PCIe solid-state drive)

    A PCIe SSD (PCIe solid-state drive) is a high-speed expansion card that attaches a computer to its peripherals.

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close