ABSTRACT

Local governments are under pressure to provide common municipal services more efficiently and effectively. To do so, they have adopted privatization as a strategy, thereby introducing competition in the delivery of services and challenging their own in-house monopolies. Privatization and public–private partnerships encompass several different techniques; the principal ones are contracting, competitive sourcing, and divestment. Privatization is widespread; local governments use some form of it for 43% of their services. Studies show savings of up to 35%. Opposition to or agreement with privatization can be principled, ideological, or self-serving.