Privatization is the transfer of assets or service delivery from the government to the private sector. Private industry is the mainstay of the U.S. economy, which is based on a free-market system. U.S. private industries are competitive in nearly all sectors, from textiles and communications, to steel, agriculture and beyond.

Government regulation of the private sector is limited and public agencies contract with private business for goods and services. Therefore, there is little movement from the public to the private sector. However, there are various types and techniques of privatization practices in place, including contracting out (or outsourcing), management controls, public-private competition, franchising, internal markets, asset sale or long-term lease, vouchers and commercialization, to name a few.

Source: CIA World Fact Book