Synonyms
Definition
The process by which a company or organization is transferred from the local government to the private sector (private company) so that the latter will hold ownership and control thereafter.
Introduction
The term “privatization” sometimes is ambiguous. There are several ways in which the private sector manages municipal services: concessions, delegated management contracts, leasing, or other forms of public–private partnership. However, these management agreements are normally not considered as privatization. The term privatization refers to a transfer of assets to the private sector rather than just a transfer of activities. This distinction is necessary because an increasing share of privatizations takes place in public utilities and infrastructure, sectors which also have a high proportion of public–private partnerships that in some aspects may be close substitutes to asset sell-offs (OECD 2009). Figure 1shows the continuum that exists between...
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References
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Bastida, F. (2016). Privatization in Local Governments. In: Farazmand, A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-31816-5_2310-1
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DOI: https://doi.org/10.1007/978-3-319-31816-5_2310-1
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