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Difficulty: EasyPrivatization, Commercialization, and Deregulation of Public Enterprises

Which structural economic policy specifically involves the sale of government-owned equity and operational control in public corporations to private investors?

  1. PrivatizationAnswer
  2. B
    Commercialization
  3. C
    Deregulation
  4. D
    Indigenization

Answer

Privatization is the economic policy that involves selling government equity and transferring control of public enterprises to private investors.
Privatization directly refers to the policy of selling government equity and transferring ownership and managerial control of state-owned enterprises to private individuals or corporate investors.

Step-by-Step Solution

1
Analyze the core policy requirement described in the stem.
The requirement focuses on transferring government equity and ownership rights to private entities.
Divestment of government shares in public enterprises defines ownership transfer.
2
Distinguish between privatization, commercialization, and deregulation.
Commercialization retains state ownership, deregulation removes market restrictions, while privatization sells government equity to private buyers.
Only privatization changes the ownership structure from public to private.

Key Concept

Distinction between Privatization and Commercialization
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Topics

Privatization, Commercialization, and Deregulation of Public Enterprises

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