The Threat of Privatization: The Impetus Behind Government Performance

Abstract

There has not been a great deal of research, especially empirical research that examines the possible relationship between privatization and increased government performance. This study looks at the current privatization literature which suggests that when the threat of privatization looms, there may be a correlation with improved government performance. While many surmise that privatization is superior to public management, very few studies examine the threat of privatization as a possible impetus in improving government performance and productivity.

This study inspects the privatization literature to ascertain the plausibility of a link existing between the threat of privatization and improved government performance. Based on the literature, the study qualitatively supports the assertion that many public sector organizations that appear to be threatened by privatization seem to improve government performance and productivity.

Keywords:

• privatization
• threat
• productivity

Notes

10. Ibid.

11. Ibid, 457.

16. Ibid, 30.

18. Ibid, 10.

19. Deloitte & Touche. (2004). Managed Competition: Proceed – with caution. Deloitte & Touche LLP and affiliated entities.

21. Ibid, 3.

23. Ibid.

26. Jensen, 1995.

27. Ibid.

28. Ibid, 4.

31. Ibid.

35. Ibid.

36. Williams & Harsh, March 2000.

41. Ibid, 3.

44. Cook, P. G., and C. E. Kirkpatrick, C. E. (1988). Privatisation in less developed countries. Brighton, UK: Wheatsheaf, p. 22; Shapiro, C., and Willig, R. (1990). Economic rationales for the scope of privatization. In Suleiman, E. and Waterbury, J. (eds), The political economy of public sector reform and privatization. Boulder, CO: Westview Press, p. 58; Vickers, J., and Yarrow, G. (1988). Privatization: An economic analysis. Cambridge, MA: MIT Press, p. 40–41.

47. Ibid, 8.

48. Ibid.

49. Ibid, 10.

52. Ibid.

53. Ibid.

54. Wertz & Tyer, 1997. 8,

55. Winston, P. G., and Burwick, A. (May 2002). Challenges faced in privatizing social services. Washington, DC: Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation: Sclar, E. D. (2000) You don't always get what you pay for: The economics of privatization; Ithaca, NY: Cornell University Press: Yates, J. (November 1998) Managing the contracting process for results in welfare reform. Issue Notes 2. Washington, DC: Welfare Information Network. Cohen, S., and Eimicke, W. (2001). Overcoming Operational Obstacles to Privatization: The Art and Craft of Contracting, Annual Research Conference of the Association of Policy Analysis and Management, Washington DC.

56. Winston, & Burwick, May 2002.

58. Winston & Burwick, May 2002.