Privatization
Definition
Privatization is the process of transferring ownership or control of a public service, enterprise, agency or property from the government to the private sector.
Analogy
Think of privatization like your parents deciding to stop doing all the house chores and instead hiring a cleaning company. The cleaning company represents a private entity taking over tasks that were previously managed by your parents (the government).
Related terms
Public Sector: This refers to the part of an economy that is controlled by national, state, or provincial, and local governments.
Deregulation: This is the reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.
Capitalism: An economic system where trade and industry are controlled by private owners for profit rather than by the state.
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