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Economics vocabulary · Fiscal Policy and Public Finance

Privatisation

Meaning in economics, with examples

/ˌpraɪvətaɪˈzeɪʃn/nounCommon term

In economics, privatisation means: The sale of state-owned companies or services to private owners, or handing over their management to the private sector.

In Turkish: özelleştirme

How it is used

Governments privatise companies to raise revenue, reduce debt or improve efficiency; critics worry about job losses and private monopolies. The opposite is nationalisation. In Turkey, sales are run by the Privatization Administration (ÖİB). US spelling: privatization.

Example sentences

  1. The privatisation of electricity distribution raised billions for the Treasury.

  2. Supporters say privatisation made the telecom sector more competitive.

Common collocations

  • privatisation programme
  • privatisation revenue
  • large-scale privatisation
  • nationalisation
  • private sectorThe part of the economy made up of businesses and organisations that are owned by individuals or companies rather than by the state.
  • public sectorThe part of the economy owned, funded or run by the state, including government departments, public schools and hospitals, and state-owned companies.
  • planned economyAn economic system in which the state decides what is produced, how much, and at what price, instead of leaving these choices to markets.
  • competitionRivalry between firms that sell similar products and try to win the same customers, which tends to push prices down and quality up.
  • public debtThe total amount of money that a government owes to lenders at home and abroad, built up over years of borrowing.

More terms: Fiscal Policy and Public Finance

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