What is Privatisation?

In order to understand much of the content on this website, we require a common understanding of privatisation.

Definitions and Views of privatisation

“…covering any policies, processes and activities which brings market forces (which encompasses the drive to make a profit and competition), into the public sector or the delivery of public services. It therefore, covers a range of activities, not only the complete or partial sell-off of state enterprises.”
South African Municipal Worker’s Union

“the transfer of productive assets from the state to private sector investors through methods such as auctions, stock offers, stock distributions, negotiated sales…Other methods include leasing, joint ventures, management contracts and concessions.”

World Bank

“We see privatisation as deepening of democracy because it removes political interference from the running of companies.”
Valentia Chitalu, Director of Zambian Privatisation Agency

“Women have been indirectly affected by privatisation. With the increasing unemployment brought about by privatisation, the prospects for affirmative action policies have worsened. Privatisation has also brought attacks on trade-union organisations in its wake, making it harder to increase women’s participation in unions and thus public life more generally.”
G. Zeynep, Turkish writer

What is privatisation?
A state-owned enterprise could be the postal service, hospital services, telecommunication, water supply, busses and trains, electricity and so on. The most common definition of privatisation is the selling off of state-owned enterprises to the private sector.

Other forms of privatisation:
# Contracting/outsourcing – this happens when a specific service within a state-owned enterprise such school books are no longer printed by government printers but a private company. This may be done permanently or a contract period.
# Public-private partnerships – this happens when the state and business jointly manage the enterprise/provision of service.
# Increasing user charges for state services – (education, health, water, transport and so on) The expectation is that the private individual will pay
# Removing restrictions in areas of the economy that prevented private companies from operating. These may be in telecommunications or water supply and so on.

You can download this privatisation booklet from the links below.