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Privatization is another word for disinvestment or denationalization. All these terms refer to the fact when a government decides that a public run service should be transferred from the government’s control over to the private sector. This transfer to the private sector is either done fully or only partially. Sometimes however what the government does is that even though a certain service is run by the private sector, the government maintains a certain degree of control over it. This is known as municipalization.

The opposite of privatization is known as nationalization. In this, a privately owned company is usually transferred to the government to take charge of. The government is then responsible for the running of that particular service/industry which the private sector has handed to them.

There are many industries in the world which are either privatized or nationalized. Many industries in the United States too are either owned or controlled by the private sector or they are a municipality. There is however much debate over the pro’s and con’s of nationalization and privatization; it is no doubt that each process has its own advantages.

People who are generally in favor of privatization state that since the private sector is more efficient and has more capital, it will be able to provide a better service than compared to the government which is always lacking in sufficient resources. Since the private sector is profit based, the industry will ensure quality in the service which it provides and hence people will get value for their money. People against privatization, however, will put forward the claim that since the private sector is profit based; it will charge consumers a high price for a service which the government would have generally provided at a lower price. Again, there are advantages and disadvantages associated with each of these processes and people are right on their own. Businesses and industries need to analyze in depth what the benefits and drawbacks of privatization are likely to be, not only on…

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