Difference Between Privatization and Disinvestment

Privatization vs Disinvestment

Though privatization and disinvestment are terms that are used interchangeably there is a difference between them with regard to the ownership. Disinvestment may or may not be an outcome of privatization. When it comes to defining the term privatization, it usually involves transforming the ownership of a public sector business to the private sector known as a strategic buyer. In disinvestment, the same transformation process happens while retaining 26% or in some contexts 51% percent of share right (i.e. the voting power) with the public sector organization. The rest is transferred to the desired partner. In this 26% of holding of the voting stake, all the vital decisions remain with the public sector organization.

什么是私有化？

As a definition, privatizations means transforming the stake of a public sector organization to a strategic partner, usually a private sector organization。For example, during the 1980s and 1990s many UK government organizations were privatized. Such as British Airways, gas companies, electric companies, etc. Theoretically, there are potential advantages and disadvantages in privatization. Benefits in terms ofefficiencyis highlighted as an advantage. The prime argument on this advantage is private companies seeks for cost cutting and efficiency procedures and thusefficiency improvementsare anticipated. It is said that, companies such as British Airways and BT has benefited from improved efficiency after privatization. Secondly, thelow involvement of political interference突出显示。一般的理解是，政府经理做出不良决定，因为他们在政治压力下工作。但是，一旦私有化了压力不存在，因此预期有效的决定。第三，就相对而言governments have short term viewsprovided the选举结果，压力等等，不愿投资有价值的基础设施。第四，在私有化中，预计将获得利益stakeholders。一旦私有化，股东是推动公司的直接利益相关者，因此效力预计。此外,increased competition levels也可以将其视为好处。一旦私有化，就会增加竞争的相对竞争对手数量。为了获得比其他竞争对手的优势，需要私有化的公司来实施竞争策略以确保其竞争地位，从而预期有效的工作程序。

只要优势，也可以看到私有化的缺点。重要的是，可以看到与公共形象有关的缺点。一旦公共组织被私有化，public image in relation to the privatized company is reduced因为公众认为该实体由于缺乏管理，盈利能力等而被私有化。fragmentationsof relative industries andcreation of monopoliesare also seen as disadvantages.

What is Disinvestment?

不管所有权是什么（即公共或私人），每个公司都会理解扩展的价值。简而言之，全球几乎所有公司都期望增长。在撤资中，相同的转换过程像私有化一样发生保留26％或在某些情况下，与公共部门组织的股份权利51％（即投票权）。The rest is transferred to the desired partner. In this 26% or 51% of holding of the voting stake, all the vital decisions remain with the public sector organization. Same as privatization, disinvestment as well comprises of的优点和缺点。Comparatively私有资本的高流入,capacity enhancementsin entering intonew markets和increased competitionare seen as advantages of this strategy. In relation to disadvantages,loosing of the public interest,fear for foreign controlling power,problems in relation to employeesare seen as disadvantages of disinvestment.

私有化和投资之间有什么区别？

• Definitions of Privatization and Disinvestment:

• Privatization involves transforming the ownership of a public sector business to the private sector known as strategic buyer.

• Disinvestment is also a transformation process that happens while retaining 26% or, in some contexts, 51% percent of share right (i.e. the voting power) with the public sector organization. The rest is transferred to the desired partner.

• Ownership:

•在私有化中，将全部所有权转移给战略合作伙伴。

• In disinvestment, usually, 26% or 51% of share is retained with the government company, and the rest is transferred to the strategic partner.

图像提供：

1. Peter W. Rodino Federal Office Building in Newark, New Jerseyby麦克男(CC BY-SA 2.0)
2. Disinvestmentby用户：SSZ(CC BY-SA 1.0)