The competition among communities forces them to provide public goods at the most efficient level. Direct government provision of goods and services, with its hierarchy and bureaucratic controls, may be needed precisely because it is less responsive to market influences. Due to the nature of public goods, which may be less profitable and more complicated to deliver, most public contracting has no competition (monopoly) or minimal competition among very few firms (oligopoly). 79-96 in State Devolution in America: Implications for a Diverse Society. They argue that in order to accommodate evolving societal land use needs, governments should use market based bargaining procedures that involve only direct stakeholders. “Public and Private Bureaucracies: A Transaction Cost Economics Perspective,” Journal of Law, Economics and Organization 15(1):306-342. Zerbe and Mc Curdy argue that the case for eliminating market failure through the internalization of externalities is flawed, and that governments should intervene in the marketplace only when they have the ability to lower transaction costs Sclar, Elliot. "All in the System: Organizational Theories and Public Contracting," Chapter 5 of You Don’t Always Get What You Pay For: The Economics of Privatization. Privatization is not only about economics; it is also about politics. Privatization also represents an overarching political agenda to alter the relationship between government and citizen. The article primarily focuses on systemic privatization. "Privatization in the United States: Theory and Practice." Political Science Quarterly. Henig traces the development of the theory and the practice of privatization in the United States until 1989-90. Starr also disputes two main arguments of privatization advocates: that with privatization 1) choice will increase and 2) costs will be reduced. Neo-classical economics focuses on the individual while structural approaches propose that larger social structures explain human behavior. "Reversing privatization, rebalancing government reform: Markets, deliberation and planning." Policy and Society 27: 163–174. Boyne offers an overview of various empirical studies that focus on the determinants of why certain local governments opt to contract out. Miranda and Lerner note the relatively high level of mixed (public and private) production for the same service and seek to explain how such redundancy could still be efficient. Advocating public policies based upon individual liberty and responsibility and a free-market approach, the Reason Foundation undertakes practical policy research. "The Politics of Privatization." Privatization 1996. Based on excerpts of several mayors' remarks, this article argues competition is the key to smaller government. "Creating the Right Institutions for Competitive Government." Privatization 1997. Public Private Partnerships in the Public Interest. Some indicate the public sector understands how asset valuation is done but fails to account for private sector desire to garner first mover advantage in a new market. In this paper, they propose the structured financial techniques (specifically debt swaps, sweeps, and raising internal valuations) used by private investors alter revenue estimates favorably for investors and lead to bid inflation. Market approaches to public goods provision emphasize the competitive state, and attribute limited degree of privatization to bureaucratic resistance.
Williamson examines public bureaucracy through the lens of transaction cost economics, pointing out that public bureaucracy, like other modes of governance, is well suited to some transactions and poorly suited to others. He argues that privatization is a new name for an old practice of government contracting. Kabeer offers a compromise between the two as a better model, using Bangledeshi women in the labor force as an example. Following the emergence of the New Public Management model in the late 20th Century, Warner argues that governments are now seeking a more balanced approach to public service provision by incorporating civic engagement as well as private market dynamics. "Privatization and the Market Role of Government," Briefing Paper, Economic Policy Institute, . This article uses national data published by the International City/County Management Association (ICMA) for the period 1982 to 1997 to show that service delivery by public employees remains the dominant form of service provision over the wide range of restructuring alternatives and that privatization has not increased dramatically. "How Much Privatization: A Research Note Examining the Use of Privatization by Cities in 19." Policy Studies Journal 24 (Winter): 632-640. Boyne aims to answer two questions: 1) To what extent do empirical studies provide an explanation of variations in service contracting? "Is Private Production of Public Services Cheaper than Public Production? They argue redundancy can enhance competition, provide a benchmark for costs, and ensure failsafe security in the event of contract failure. Their annual year book, Privatization, describes recent developments in privatization, including the following articles. The latter part presents the job-loss impact of privatization. This article describes how to create a level playing field between in-house public units and outside private providers, called "competitive neutrality," when setting up a public-private competition program. Others think the public sector lacks the information and the means to control the underlying drivers of asset value. The research suggests a presence of informational asymmetries and structural power imbalances within the bargaining context. Rural development theory emphasizes the uneven impact of market solutions in rural communities. "The Uneven Distribution of Market Solutions for Public Goods," Journal of Urban Affairs, 24(4): 445-459.
Also see Ballard and Warner 2000 Taking the High Road: Local Government Restructuring and the Quest for Quality for an analysis of case studies which show why governments bring the work back in. Rather than treating public and private provision of public goods and services as a strict dichotomy, a 1997 survey of chief elected township and county officials in New York shows local governments use both private and public sector mechanisms to structure the market, create competition and attain economies of scale. The nature and relative importance of three alternatives to privatization – inter-municipal cooperation, reverse privatization and governmental entrepreneurship are described. Significant levels of reverse privatization and governmental entrepreneurship were also found. Privatization for New York: Competing for a Better Future.
You may also search our online database of case studies of contracting back in. In addition to privatization and inter-municipal cooperation, two alternative forms of service delivery not previously researched, reverse privatization and governmental entrepreneurship, are analyzed. Incidence of restructuring was highest among counties, and in the following service areas: public works, public safety, and general governmental support functions. The Lauder Report; A report of the NYS Senate Advisory Commission on Privatization. This volume provides a review of experiences with privatization in New York State and recommendations for expanding its use, from a proponent's perspective.
[…] Mussolini had always been an elitist, as well as a singularly anti-democratic revolutionary.” Gaining elite support, consolidating party rule and personality-cult dictatorship, and concentrating the tasks of government on repression and militarism: Privatization has historically been driven by power politics.
Introduction Privatization is a worldwide phenomenon. In recent years all levels of government, seeking to reduce costs, have begun turning to the private sector to provide some of the services that are ordinarily provided by government.As Bel notes, “German privatization of the 1930s was intended to benefit the wealthiest sectors and enhance the economic position and political support of the elite.” The Nazis sold off public ownership in “steel, mining, banking, shipyard, ship-lines, and railways.” These had originally been nationalized in the early 1930s because of the economic disaster of the Great Depression.However, Bel argues that Nazi privatization was set “within a framework of increasing state control of the whole economy through regulation and political interference.” Uncooperative industrialists, like the head of the Junkers aircraft company, were removed from their positions; the market was very much controlled by the party. Then, state monopolies on match production, life insurance, telephone networks, and tolled highways were ended after Mussolini came to power.Under the Pinochet dictatorship, Chile set the stage, moving towards privatizing the state in the 1970s. But Bel’s research into the antecedents of this socio-political tendency turns up some surprising history., or re-privatization, marked the Nazi regime’s efforts to de-nationalize sectors of the German economy.Opponents present case studies that show public sector employees can provide more efficient alternatives to privatization (Sclar 1997). "Cities , Unions, and the Privatization of Sanitation Services." Journal of Labor Research 15 (1): 53-71. "Municipal Unions and Privatization." Public Administration Review 51 (1): 15-22. "Contracting Out in New York State: The Story the Lauder Report Chose Not to Tell." Labor Studies Journal (Spring): 3-29.The expertise and experience of many government employees may make them better at providing government services, and management techniques like total quality management are making the public sector more efficient. This article analyzes the relationship between unionization and government decisions to contract out sanitation services using a conceptual framework that emphasizes political considerations. The authors examine the impacts of unionization on local governments' decision to contract out sanitation services, based on a survey of 1,541 municipalities between 19. The author sees privatization as a disruptive, harmful way of cost saving. "What Impact Has Privatization Had on Pay and Employment: A Review of the UK Experience." Industrial Relations 52 (3): 554-579. "Subcontracting in the Public Sector: The New York State Experience." : Cornell University.For more discussion of this phenomenon see, Hefetz and Warner 2004 Privatization and its Reverse. Hebdon "Local Government Restructuring in New York State: Summary of Survey Results" Restructuring in New York State primarily involves public sector innovation rather than privatization.For a more descriptive account with case studies, see Warner and Hefetz 2001 Privatization and the Market Structuring Role of Local Government. 2001 "Local Government Restructuring: Privatization and Its Alternatives," Journal of Policy Analysis and Management 20(2):315-336. "Structuring the Market for Service Delivery: A New Role for Local Government." pp 85-104 in Local Government Innovation: Issues and Trends in Privatization and Managed Competition, Robin Johnson and Norman Walzer eds. Case study analysis of reverse privatization among New York State towns and counties shows how governments engage the market to ensure competition, control and attention to community values. Intermunicipal cooperation was the predominant form of restructuring, while privatization was the second most common form of restructuring.The Ansaldo company, which produced boats, trains, airplanes, and naval equipment, had initially been nationalized by the Fascists in 1921 when it went into bankruptcy. The earliest Fascist manifestos “rejected private ownership and industrial interests.” Considering many of the first party members were ex-socialists like Mussolini himself, this should not be surprising.But once in power, the Fascists reversed themselves and called for an end to the “Collectivist State.” Bel notes that Mussolini was a tactician above all, and quotes historian James Gregor: “there was little that was conservative, liberal, or politically democratic about his most fundamental convictions.