In a lecture entitled The State-Corporate Complex: A Threat to Freedom and Survival given by Noam Chomsky in 2011, at the University of Toronto, a 'standard technique of privatization' is described:
Social Security is actually in pretty good shape despite what everybody screams about. But if you can defund it, it won’t be in good shape. And there is a standard technique of privatization, namely defund what you want to privatize. Like when Thatcher wanted to defund [privatize] the railroads, first thing to do is defund them, then they don’t work and people get angry and they want a change. You say okay, privatize them and then they get worse. In that case the government had to step in and rescue it.
That's the standard technique of privatization: defund, make sure things don’t work, people get angry, you hand it over to private capital. That’s the Social Security scam.
Is there a specific term for this practice of cutting funds allocated to a public asset, such as the given example of railroads, in order to facilitate its privatization?
Note: The factual accuracy of this quote has previously been discussed here, but I don't see a term which characterizes this practice.