Privatizacao
In short
The transfer of assets, services, or businesses from the public sector to private ownership and management.
In plain words
This happens when a government sells a state-owned company to private investors. It can also mean letting private firms handle government tasks like running prisons or collecting taxes.
A simple example
A government sells its national railway company to a private corporation. The new owners then manage the trains and collect the ticket money.
Why it matters
It can increase efficiency and competition in a market. However, it often leads to debates about whether essential services become too expensive for the public.
Easy to mix up
It is often confused with deregulation, which is simply reducing the rules that govern private companies.