Privatisation
Privatisation is the sale of state-owned enterprises to private investors and operation by private companies rather than government. It shifts businesses from public sector control to private sector ownership and management.
Real World
British Telecom was privatised in 1984; critics argue its continued dominance of broadband infrastructure shows privatisation alone does not guarantee competitive outcomes without robust regulation.
Exam Focus
Always evaluate both sides — privatisation improves productive efficiency but may worsen equity or require costly regulation.
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