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Answer on Other Economics Question for faith

Question #37292
how do economies in transition handle privatzation
Expert's answer
Privatization is transferring ownership of a business from the public sector to the private sector. Although typically there are social costs associated with the gains, many economists argue that these can be dealt with by appropriate government support through redistribution and perhaps retraining. Transition economies undergo economic liberalization, where market forces set prices rather than a central planning organization and trade barriers are removed, privatization of government-owned enterprises and resources, and the creation of a financial sector. The process has been applied in China,and many third world countries.

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