What is a concession?

The word "concession" came to us from the Latin language: from the word "concessio", which means "concession", "concede". What is the significance of this term in Russian speech?

• Concession is a special agreement allowingone state to use the lands, plots, natural resources of another state. The goal of the state that gives the concession is to restore its economy, get a boost in the development of these lands or natural resources. The goal of the one who takes the concession is, of course, getting benefits from the resources that he does not have on his territory.
• Also, a concession is a method of usingstate assets - cash, land and others, in which a greater percentage of profits goes to a private entrepreneur. This is a kind of rent, and sometimes privatization of state assets. For example, it is very profitable for a concession to farm, rent a railway, extract minerals in a certain area.

You learned what a concession is. The meanings of other complex and rare terms you can learn from the articles of our section Definitions.