Meaning Of Privatization
Privatization is the incidence or process of transferring ownership of a business; enterprises; agency or public service from the government to the private sector. In the broader sense, privatization refers to transfer of any government into the private sector including government function like law enforcement and revenue collection.
Privatization could, therefore be defined as the transfer of ownership, operating and/ development rights from the public to the private sector; and the application of private sector objectives and discipline in the operation and management of public enterprises, combined in most cases with the transfer of commercial and financial risks to their management.
Privatization is to be understood no merely in the structure sense of who owns an enterprise, but in the substantive sense of how far the operations of enterprises are brought within the discipline of market forces through measure such as liberalization and deregulation. Privatization encompasses a broad spectrum of possibilities, between denationalization at one end and market discipline at the other. Broadly, it may consist of Divestiture and non-divestiture…