Privatized Meaning: Definition, Examples, and Translations
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privatized
[praษชหvรฆtษชzaษชzd ]
Definition
economic context
Privatized refers to the process of transferring ownership of a business, public service, or public assets from the government to private individuals or organizations. This often occurs in the context of privatization, where state-owned enterprises are sold off to private companies. The goal of privatization is typically to improve efficiency, increase competition, and reduce government expenditure. However, the effects of privatization can be contentious, and opinions on its effectiveness vary widely.
Synonyms
commercialized, corporatized, denationalized.
Examples of usage
- The government privatized the telecommunications sector.
- Many public services have been privatized in recent years.
- After being privatized, the company saw a significant increase in profits.
Translations
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Interesting Facts
Historical Origins
- The term 'privatization' gained prominence in the late 20th century, especially during the economic reforms in the UK under Prime Minister Margaret Thatcher.
- In Russia, after the fall of the Soviet Union, many state-owned enterprises were privatized in the 1990s, radically changing the economy.
Economics
- Privatization often aims to improve efficiency as private companies tend to operate with profit motives.
- Critics argue that privatization can lead to decreased service quality, especially if profit becomes the sole focus.
Controversies
- Privatizing public services like water or healthcare can lead to debates about accessibility and equity.
- Many argue that privatizing certain industries can strip individuals of their rights to basic services.
Global Perspectives
- Countries like Chile and New Zealand have adopted privatization policies with mixed results, reflecting both economic growth and social discontent.
- In contrast, some countries maintain strong public sectors as a way to ensure equity and access for all citizens.
Business Impact
- When a company goes public, it can either be privatized back through buyouts or mergers, impacting investors and employees.
- Privatization can lead to job loss in the public sector, causing significant social and economic changes.
Origin of 'privatized'
The term 'privatized' originates from the word 'privatize,' which was first used in the 20th century as part of the broader economic discourse surrounding privatization policies. The practice gained traction during the 1980s and 1990s, particularly in the context of neoliberal economic reforms implemented by various governments worldwide. The prefix 'private' indicates a relationship to individuals or non-governmental entities, while the suffix '-ize' suggests the action of making something into that state. As countries transitioned from command economies to market-oriented systems, privatization became a key strategy for economic restructuring. The implementation of privatization policies often reflected a shift in ideology, where reducing the state's role in the economy was prioritized to foster growth and innovation. Thus, 'privatized' encapsulates not only a change in ownership but also significant shifts in economic policy and societal perspective.