Privatization Research Paper

Privatization Research Paper-8
Organized labor, however, is very concerned about layoffs, erosion of wages and benefits, and decreased levels of union membership with privatization.Empirical studies show that privatization has not had a major impact on wages and working conditions (Pendleton 1997), but it can have significant effects on labor relations (Hebdon 1995).

Organized labor, however, is very concerned about layoffs, erosion of wages and benefits, and decreased levels of union membership with privatization.Empirical studies show that privatization has not had a major impact on wages and working conditions (Pendleton 1997), but it can have significant effects on labor relations (Hebdon 1995).

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They note that in some places creating the competition necessary for effective contracting is impossible, and suggest that in practice privatization is more complicated than it seems. She concludes the article by examining the implications of privatization’s actual results for local governance. In this classic article based on public choice theory, Charles Tiebout puts forth a model for determining the optimum expenditure level for public goods. "Decentralization, Intergovernmental Relations and Markets: Towards a Post-Welfare Agenda? 1-26 in Decentralization, Local Government and Markets: Towards a Post-Welfare Agenda, ed. Both decentralization and privatization reflect decentralizing trends from state to market and state to local levels of government. "Competition, Cooperation and Local Governance," chapter 19 pp 252-262 in Challenges for Rural America in the Twenty First Century, edited by David Brown and Louis Swanson, : Penn State University Press. The intention of quasi-markets is to promote consumer sovereignty and efficient provision of goods and services. Coasian bargaining creates the potential for market solutions to the provision of public goods. This article provides an example of Coasian bargaining with respect to land use planning. This article argues that this interpretation of the Coase theorem is essentially incorrect; in fact it misses some of the aspects that Ronald Coase considered key in formulating his idea. The authors discuss the different political lenses through which privatization is viewed. Standard economic measures used to make privatization decisions fail to accurately assess the real costs and benefits of care. Chapter 2 pp16 – 48 in The Power to Chose; Bangladeshi Women and Labor Market Decisions in London & Dhaka, : Verso, 2000. "Bureaucracy, Organizational Redundancy and the Privatization of Public Services." Public Administration Review 55(2): 193-200. "The Emperor's New Clothes: Transit Privatization and Public Policy." Washington, D. This article uses the example of the Urban Mass Transportation Administration, which has mandated state and local transit authorities to privatize their operations, to illustrate that private sector delivery of public goods and services is not nearly as advantageous as its proponents claim. This article summarizes the results of a survey conducted by the International City/County Management Association (ICMA) in 1992 on local area alternative service delivery, focusing on the involvement of workers and citizens in decisions to contract for government services. Pack evaluates the success and sustainability of service cost reduction from the perspective of the economic model of cost minimization through competitive bidding. The Political ‐ Economics of Infrastructure Finance: The New Sub Prime, New York: Center for Sustainable Urban Development, The Earth Institute Columbia University. Sclar combines academic literature and case studies to argue that the current Public-Private Partnership model risks undermining the public good aspect of infrastructure provision. While generally supportive of the use of public-private partnerships in the US transportation sector, Geddes outlines important best practices and policy issues for public-sector officials to consider before entering into a PPP contract. "The Financial Engineering of Infrastructure Privatization." Journal of American Planning Assocation, 78(3):300-312. "Rural-Urban Differences in Privatization: Limits to the Competitive State," Environment and Planning C: Government and Policy 21(5): 703-718.

He treats residents as consumers, who “shop around” for the communities that best fit their preferences. "Competition and Local Government: A Public Choice Perspective." Urban Studies 33 (4-5): 703-721. Competition Critiques: Competition is rarely found in markets for public goods because of the fundamental structure of such markets. Lowery contends that quasi-markets often fail to meet these objectives due to 1) failure of market formation (lack of competition), 2) failure by preference error on the part of consumers and 3) failure by preference substitution (the difference between individual and collective wants). Market Structures and Public Contracting," Chapter 4 of You Don’t Always Get What You Pay For: The Economics of Privatization. In this chapter, Sclar challenges the argument that privatization creates competition, and therefore efficiency, in the public sector. "Restructuring the State: Devolution, Privatization, and the Geographic Redistribution of Power and Capacity in Governance." pp. However it raises the issue of transactions costs which may be hard to manage. Staley and Scarlet propose changes to current planning processes, to streamline the development process and reduce transaction costs. "The Failure of Market Failure," Journal of Policy Analysis and Management 18(4):558-578. Several of his assumptions are ignored in the discourse. "The Political Underpinnings of Privatization: A Typology". They emphasize pragmatic privatization as a means of cost-cutting, tactical privatization as a way of rewarding allies, and systemic privatization to change institutional structures and societal ideologies. This article provides a theoretical critique of privatization and its potential effects on justice, security, and citizenship. Kabeer discusses two contradictory positions in social science theory that attempt to explain social and economic change. Lehman takes the special case of public lands and shows the limits of market allocation mechanisms. Privatization alone may not lead to better quality or cost reduction in public service delivery. The Reason Foundation, established in 1978, provides excellent materials on privatization (see According to Geddes, it is important to develop the appropriate “infrastructure of an institutional nature” in order to successfully benefit from these types of partnerships, as their initiation, negotiation, and management can be particularly complicated. There has been great debate as to why public sector entities so often undervalue what a project will be worth long-term to a private buyer. Despite two decades of experience with privatization, US local government use of contracting in public service delivery remains relatively flat.

Williamson claims that there is an efficient place for public bureaucracy, but that each type of governance (markets, hybrids, firms, regulation), has its own place. He points to the political nature of the privatization agenda and questions its long term viability. : International City County Management Association. ICMA has been tracking local governments’ use of alternative service delivery approaches since 1982, finding that privatization trends have actually change little over the years. It evaluates two theories as to why privatization has not increased: government failure and quasi-market failure. Green reviews survey results of the International City/County Management Association for 596 cities, between 19, that gauged how much municipalities had privatized and their reasons for privatization. Statistical methods used in studies cited by public choice theorists lack critical control variables and a reliable measure of competition, and therefore lead to invalid conclusions. 2) Does the evidence improve our understanding of why different local governments adopt different policies? A meta-regression analysis of solid waste and water services," Journal of Policy Analysis and Management, 29(3): 553-577. 2002 "Applying Market Solutions to Public Services: An Assessment of Efficiency, Equity and Voice," Urban Affairs Review, 38(1):70-89. "Taking the High Road: Local Government Restructuring and the Quest for Quality." Pp 6/1 - 6/53 in Power Tools for Fighting Privatization, American Federation of State, County and Municipal Employees: . "The Privatization of Public Service: Lessons from Case Studies."Washington, D. This article presents several case studies that show public sector employees can provide a more efficient alternative to privatization: the Albany Department of Public Works, highways in Massachusetts, and Indianapolis Fleet Services. The authors use the examples of the Chicago Skyway and parking meter privatization to show how this happens in real-world situations. Using national data on US local government service delivery from 19, we analyze differences in local government service-delivery patterns by metropolitan status. Using national data on local government service delivery from 19, this article assesses the distribution of privatization and inter-municipal cooperation across localities in the metropolitan region and finds them most common among suburbs.

What has risen most dramatically over the 1992-2002 time period is the use of mixed public/private provision. The study used two indicators of privatization, privatization levels, and privatization diversity. Boyne aims to reevaluate the empirical evidence on the effects of service contracting by United States local governments. "The Determinants of Variations in Local Service Contracting: Garbage in Garbage Out? The authors conduct a meta-regression analysis to empirically test if there is systematic support for the claim that private provision of water distribution and solid waste collection services achieves lower overall costs than public provision. "Contracting Back In – When Privatization Fails," chapter 4 pp 30-36 in The Municipal Year Book 2003. The authors assess the efficacy of market solutions for metropolitan public service provision by comparing privatization with inter-municipal cooperation and evaluating each on efficiency, equity and democracy grounds. Using detailed case studies, this report outlines two alternative strategies for improving local government service delivery—the "high road” which uses new management innovations to increase internal productivity, and the “low road” which focuses on downsizing and contracting out. Discriminant analysis suggested that structural features of markets are more important than the managerial capacity of government leaders in explaining lower rates of privatization among rural governments. While privatization is the most popular form of alternative local government service delivery, longitudinal analysis shows these contracts are not stable over time.

In New York State, labor concerns are also a major issue.

Although empirical studies do not provide clear evidence on the costs and benefits of privatization, public perception and pressure for improved government efficiency will keep privatization on the government agenda.Most privatization research is based on case studies. Proponents argue that private firms are more efficient than government because of economies of scale, higher labor productivity, and fewer legal constraints. Savas, an advocate of privatization, describes the theory and practice of privatization and alternative service delivery arrangements, illustrating the appropriate use of various privatization techniques. You Don’t Always Get What You Pay For: The Economics of Privatization. Elliot Sclar lays out and critiques the standard market-based arguments for privatization, using local government case studies.He faults government service provision for its monopoly status and inability to be responsive to citizens' needs, resulting in inefficient, one-size-fits-all services. He concludes that advocates of privatization should proceed with caution. This book outlines a theory for the potential of Coasian-style bargaining to work in complex urban contexts.[…] 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.The Contracting Process: Issues surrounding contracting out include the cost of information and monitoring and the need to create a level playing field for competitive bidding between public workers and the private sector. "Privatization and Its Reverse: Explaining the Dynamics of the Government Contracting Process" Journal of Public Administration, Research and Theory, 14(2):171-190. This article shows that the level of contracting back in previously privatized services is significant among local governments in the US. : International City County Management Association. Between 19, the most common forms of alternative service delivery (privatization to for-profits and non-profits and inter-municipal cooperation) increased only slightly. They find both alternatives promote efficiency, but equity and voice are more associated with inter-municipal cooperation than privatization. These structural constraints limit the applicability of competitive approaches to local government service delivery. Using ICMA data we can track the dynamics of local government contracting.The contracting process is dynamic (contracting out and back in) and requires governments to play a market structuring role. A statistical model assessing the reasons for such behavior is presented. The stability in these trends belies a more dynamic process of contracting out and back in which reflects the key market structuring role played by local governments. Our results suggest that cooperation, as an alternative to privatization at the local level and as a source of redistributive aid at the state level, may provide a more equitable alternative for disadvantaged rural communities. We find contracting back in (or reverse privatization) is growing in importance.The privatization of the pubic sector has been one of the defining policies of the world economy since the 1970s. The Spanish scholar Germà Bel addresses where the idea of privatization comes from.State-owned utilities and monopolies have been sold off or transferred to the private sector on the neoliberal theory that “the market” is more rational and better able to manage such enterprises. Neoliberalism, predicated on a primacy of the market, is the overarching ideology of privatization.Proponents claim that public sector workers are not harmed by privatization.Displaced workers can be hired by contractors or transferred to other government positions.


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