ABSTRACT
In recent decades, the public sector, including public infrastructures and services, has mostly been discussed with respect to its efficiency. The general assumption has been that public providers of goods and services tend to underperform compared with private-sector companies and therefore present a drag on economies aiming to make the best out of scarce resources. Economists in the developed and developing world have advised governments to privatise not only state enterprises but also public infrastructures in order to boost productivity and economic growth. In cases where privatisation is not possible, they have suggested using public–private partnerships and subcontracting to emulate private-sector business strategies.
