Privatization represents a public policy decision to reduce the role of the state in the economy by transferring control of state-owned enterprises to private sector individuals or entities. The transfer can take the form of long-term leases (or concessions) or contracting out of services, but it most commonly involves the sale of assets or shares in a state-owned enterprise. Although methods of disposition are varied, they usually fall into one of three categories: initial public offering, direct sale to a preselected buyer, or voucher distribution. The latter is used by governments that issue paper claims to citizens to be exchanged for shares or units in a portfolio of companies. This approach was widely employed in Eastern Europe during the 1990s, especially in the Czech Republic, ...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles