Definition of privatization - SS2 Government Lesson Note

Privatization is the process of transferring ownership or control of a government-owned or state-owned enterprise, asset or service to the private sector. This can involve selling off shares of the enterprise to private investors or transferring ownership of the enterprise to a private company or individual.

The aim of privatization is to improve efficiency and effectiveness by introducing private sector competition and management practices, as well as to raise funds for the government.