Privatization and and Nationalisation


Nationalization
the acquisition of private companies by the public sector

Privatization

the return of state enterprises to private ownership and control

Deregulation

Privatization was often accompanied by deregulation.
This involves opening the market to competition. E.G. BT was a legal monopoly, but after privatization the market was opened up to competition and competitors could use BT’s network.

Deregulation took longer in Electricity and Gas and will be very difficult in Water.

Nationalization

Another possibility is to nationalize the industry and provide a subsidy to cover the loss It was popular in Europe in 1945-80

Revision Notes and Essays on Privatisation