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".

BREAKING DOWN '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.

  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. Quasi-Public Corporation

    A type of corporation in the private sector that is backed by ...
  4. Government Purchases

    Expenditures made in the private sector by all levels of government, ...
  5. Legal Monopoly

    A company that is operating as a monopoly under a government ...
  6. Private Company

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