# privatization

/ˈpɹaɪvətəˈzeɪʃən/ (US) · CEFR C1 · Noun

Source: https://englishreference.com/word/privatization
Updated: 2026-05-02

## Definition

the process of selling a business or service that was owned by the government to a private company. This means the government no longer runs it, and it is now managed for profit.

For teachers: the transfer of ownership, property, or business from the public sector to the private sector. This process typically involves the sale of state-owned assets or the outsourcing of government services to private corporations.

## Examples

- The privatization of the national railway led to higher ticket prices.
- Economists debated whether the privatization of the water supply would improve efficiency or simply increase costs for consumers.
- Critics of rapid privatization argue that selling off essential public utilities without robust regulatory oversight can lead to private monopolies that prioritize shareholder dividends over public service quality.

## Usage notes

- Uncountable when referring to the general economic concept; countable when referring to a specific instance or policy program.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.