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Additionally, individuals can respond to market conditions faster and more efficiently than the state itself. Hence, the transfer of ownership from the state to private agents is a key process in transition. Some authors even argue that privatization is transition (Bennett et al. 5), since it leads to redistribution of power and lays the foundations for development of a free market.
The basic definition of privatization is a transfer of ownership rights from the state to individuals. In a broader sense, privatization includes all processes that help countries move from socialism to capitalism...
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