What Is Privatization? What Role Does It Play in Economic

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The Answer is The selling of government-owned economic resources to private operators is called privatization.Privatization helps eliminate subsidized materials,labor,and capital formerly provided to government-owned companies.It also curtails the practice of appointing managers for political reasons rather than for their professional expertise.To survive,newly privatized companies must produce competitive products at fair prices because they are subject to forces of the free market.The overall aim of privatization is to increase economic efficiency,boost productivity,and raise living standards.
Economic transition is the process through which countries move from centrally planned economies to stronger market economies.This process involves changing a nation's fundamental economic organization and creating entirely new free-market institutions.It typically involves four reform measures: (1)stabilizing the economy; (2)allowing prices to reflect supply and demand; (3)legalizing private business; and (4)reducing barriers to trade.
During economic transition,privatization occurs as part of establishing a free market system.To solidify the new economy,governments must legalize private business,sell state-owned companies,and support property rights as this legalization helps in increasing economic efficiency,boosting productivity and raising the standard of living of a country.

What Is Privatization? What Role Does It Play in Economic

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