Final answer:
Privatization can have both positive and negative impacts on an economy, leading to increased efficiency and productivity but also potential drawbacks such as higher prices and loss of access to services.
Step-by-step explanation:
Privatization, which involves increasing the role of the private sector, can have both positive and negative impacts on an economy. On the positive side, privatization can lead to increased efficiency and productivity as private companies compete for profits. It can also attract investment and stimulate economic growth. However, privatization can also result in higher prices for consumers and loss of access to services, especially for disadvantaged groups. Additionally, there may be a risk of corruption or exploitation if proper regulations are not in place.