NCJ Number
110852
Date Published
Unknown
Length
19 pages
Annotation
The concept of privatization of public services and public assets is examined critically, in terms of both the specific claims of its supporters and the general view it offers of the political and economic system.
Abstract
Policies encouraging privatization include the cessation of public programs in certain areas, the sale of public assets such as land and infrastructure, and the financing of private provision of services. These forms of privatization vary greatly in their consequences in terms of public spending, accountability, and effects on competition. Advocates of privatization argue that private providers are superior in efficiency, but close examination of the record shows that this is not the case. In addition, comparisons of public and private provision of such services as schools are misleading due to the differences in clientele and tasks. Moreover, although advocates of privatization claim that it will enlarge the range of choice for individuals and provide greater equity, privatization in fact reduces the sphere of public information, deliberation, and accountability. It also reduces both access to services and individual incentive for community participation. Nevertheless, each program and general area should be subject to individual examination and determination of the appropriate public-private balance and the possible intermediate options in organizational forms and modes of ownership, control, and finance. 29 footnotes.