Eli5: How does privatization of an essential public good/service/infrastructure work and what are the reasons behind it?

Question

From what ive read, consumers are definitely not the beneficiaries in such arrangements. Why do governments do this then? Why give up ownership and control of vital stuff (e.g. water, utilities, highways, etc.) to private – and often – foreign entities?

In: 142

Answer 1

When done correctly privatization can drive competition, no public company can compete with a state owned one. This, the free market, can benefit the customer in the end.

I think telecom companies in Europe were privatized correctly and that is why we have good internet.