Synonyms
Definition
The transfer of ownership of a state-owned company from a government (public sector) to a privately owned entity or private investors (private sector).
Introduction
The privatization of state-owned enterprises (SOEs) has become a common process all over the world and is considered a major component of the New Public Management (NPM). The sale of SOEs and their assets to private parties by the governments has been one of the most relevant issues in the reforms of the public sector, and privatizations are expected to correct inefficiencies associated with the public sector. Moreover, the requirement of the European Union of governmental neutrality, the globalization of markets, and changes in organizational and productive processes have led to the decrease of the intervention of governments in the economy.
Privatization has not only reduced the role of the State in the production of goods and services, but has also increased the size...
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References
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Bachiller, P. (2016). Privatization in Central Government. 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_2311-1
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DOI: https://doi.org/10.1007/978-3-319-31816-5_2311-1
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Publisher Name: Springer, Cham
Online ISBN: 978-3-319-31816-5
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