Deprivatization

AAA

DEFINITION of 'Deprivatization'

The act of transferring ownership from the private sector to the public sector. Deprivatization often occurs when a government attempts to maintain the stability of its critical infrastructure during periods of economic distress. This can occur in various segments of the economy.

Also known as "nationalization".

INVESTOPEDIA EXPLAINS 'Deprivatization'

Deprivatization generally occurs in the areas of transportation, electricity generation, natural gas, water supply and healthcare because governments want to ensure these sectors are functioning properly so that the country can continue to run smoothly. In addition, electrical, natural gas and hydro companies tend to be monopolies, and governments will often want to have control in these areas to ensure that consumers have access to these essential services at a reasonable cost.

RELATED TERMS
  1. Private Sector

    The part of the economy that is not state controlled, and is ...
  2. Nationalization

    Refers to the process of a government taking control of a company ...
  3. Corporatization

    The act of reorganizing the structure of government owned entity ...
  4. Crown Corporation

    Any corporation that is established and regulated by a country's ...
  5. Private Company

    A company whose ownership is private. As a result, it does not ...
  6. Government Purchases

    Expenditures made in the private sector by all levels of government, ...
Related Articles
  1. Explaining The World Through Macroeconomic ...
    Options & Futures

    Explaining The World Through Macroeconomic ...

  2. How does the government influence the ...
    Investing

    How does the government influence the ...

  3. Top 6 U.S. Government Financial Bailouts
    Insurance

    Top 6 U.S. Government Financial Bailouts

  4. A Review Of Past Recessions
    Insurance

    A Review Of Past Recessions

comments powered by Disqus
Hot Definitions
  1. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  6. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
Trading Center