What does the term privatization refer to?

The term privatization specifically refers to the transfer of ownership from government-controlled entities to private individuals or companies. This process often involves the sale of state-owned enterprises, allowing private sector players to manage and operate these businesses. Privatization is typically pursued to enhance efficiency, promote competition, and stimulate economic growth since private firms may be more motivated to reduce costs and innovate than government-run organizations.

In contrast, government ownership of all industries implies a system of complete public ownership, which is the opposite of privatization. Increasing public sector jobs focuses on expanding employment within government operations rather than shifting ownership to the private sector. Restricting access to private businesses relates to limiting competition or market entry for private firms, which does not align with the concept of privatization, where the emphasis is on enhancing the role of the private sector in the economy.