Privatisation or Nationalisation?
- Privatisation – is the transfer of ownership from public to the private sector, e.g. BA
- Nationalisation – is the transfer of ownership from private to the public sectors, e.g. Royal Bank of Scotland
The government may nationalise firms for a number of reasons:
- Some services will not be provided by the private sectors, e.g. NHS
- Nationalised firms give the government power over the economy
- To ensure that everyone receives vital services, e.g. NHS