Privatization

Privatization (sometimes privatisation, denationalization, or, especially in India, disinvestment) is the process of transferring property, from public ownership to private ownership and/or transferring the management of a service or activity from the government to the private sector. The opposite process is nationalization or municipalization.

Alternatives to privatization

Corporatization

Main article: corporatization

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Corporatization is a form of economic reform which takes services from the direct control of the government, and places them in the control of government-owned corporations. This is often seen as a step towards full-scale privatization.

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New Zealand has experienced the privatization of its telecommunication industry, its railway system and part of its electricity market. The process of privatization was halted in 1999 when the New Zealand Labour Party won the election. Although most of the electricity generation and the electricity transmission system remain state owned, the government has corporatized this sector as well as New Zealand Post, the Airways Corporation and other smaller state-owned enterprises (SOEs).

Related Topics:
New Zealand - Telecommunication - Railway - Electricity market - 1999 - New Zealand Labour Party - Electricity generation - Electricity transmission - New Zealand Post - Airways Corporation - State-owned enterprises

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The effect of corporatization has been to convert the state departments into public companies and interpose commercial boards of directors between the shareholding ministers and the management of the enterprises. To some extent, this model has enabled efficiencies to be gained without ownership of strategic organizations being transferred. This has been the policy of the People's Republic of China.

Related Topics:
Corporatization - Directors - People's Republic of China

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