What does privatization involve?

Privatization specifically refers to the process whereby government-owned properties or enterprises are sold or transferred to the private sector. This transition often aims to increase efficiency, promote competition, and reduce the financial burden on the government. By transferring ownership and management to private entities, the expectation is that these enterprises will operate more effectively and contribute better to the economy.

The other options do not align with the definition of privatization. The takeover of private enterprises by the government represents nationalization rather than privatization. The creation of new government programs pertains to expansion rather than the divestment of government assets. Similarly, establishing public partnerships involves collaboration between the government and private sector without the transfer of ownership, contrasting with the core concept of privatization.