REPRIVATIZATION Meaning and
Definition
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Reprivatization refers to the process of transferring control and ownership of previously nationalized or state-owned enterprises or assets back into private hands. It is the opposite of privatization, which involves the transfer of ownership from the private sector to the state or government. Reprivatization may occur for various reasons, including a change in government ideology or policy, a desire to encourage market competition, or the need to improve the efficiency and productivity of formerly state-run assets.
The process of reprivatization typically involves selling shares of the nationalized company or asset to private investors through various methods such as public offerings, auctions, or direct negotiations. The government may also grant concessions or licenses to private entities to manage and operate the assets.
Reprivatization is often recommended when the state-run enterprises face challenges such as inefficiency, corruption, bureaucratic red tape, or lack of innovation. Proponents argue that returning these enterprises to private ownership can lead to increased competitiveness, better management, improved profitability, and enhanced economic growth.
However, reprivatization is not without criticism or controversy. Critics argue that it can lead to a concentration of wealth and power, raise concerns about job security for employees of the nationalized enterprise, and potentially result in diminished public access to important services or industries. The success or failure of reprivatization depends on various factors, including proper regulation, transparency, and fair competition.
Etymology of REPRIVATIZATION
The word "reprivatization" is derived from the combination of two words: "re-" and "privatization".
The prefix "re-" is a Latin prefix meaning "back" or "again". It indicates a repetition, renewal, or return to a previous state or position. In the context of "reprivatization", it signifies the idea of returning something to private ownership or control.
The term "privatization" originates from the word "private", which comes from the Latin word "privatus", meaning "set apart" or "personal". Privatization refers to the process of transferring the ownership or control of a business, industry, or public service from the government or public sector to the private sector.
Therefore, "reprivatization" means the act of returning something that was previously publicly owned or governed back into private ownership or control.
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