Baumol's Cost Disease

Although the financial constraint was one of the initial triggers that made government to move toward privatization of health care, the argument of those who oppose to privatization remains at the prediction of future damages to the health care system caused by the privatization, not about the resolution of financial crisis. (Barkun, 2008; CBC, 2006; CNA, 2013; Deber, 2013; McDonald & McIntyre, 2014; ONA,

In Bureaucracy, James Wilson examines government agencies in comparison to the private sector. The portion we read is centered around both the individual (operator) and the organization as a whole. The idea that bureaucracies are inefficient based solely on red tape is discredited with this piece. There is no simple solution to improving the bureaucracy. Finally, Wilson demonstrates that a great deal of variables and ideas contribute to bureaucratic inefficiency.

In contrast, national healthcare or NHS also has many drawbacks, because the funding of public healthcare directly relates to state economy, hence the economic structure will be affected by the spending of public healthcare. If the spending of public healthcare keeps augment, the government will be forced to cut other expenses such as wage and health insurance (UK essay, 2013). The public healthcare is a most important issue in UK, so the spending of public healthcare occupied a big part in national budget approximately 107 billion pounds, however, education only 53 billion pounds and defence only 25 billion pounds. If the spending for the public healthcare keeps rising (NHS England, 2014), it will lead to the decrease of budget of education

This is one way to drive wages up. An alternate approach recognizes that workers who are happy in their jobs, who are paid more (perhaps above market), tend to work harder. Higher wages also reduce job leaving propensities and the cost of training new workers. Overall, workers whose productivity is rewarded tend to be more efficient. Rewarding productivity mitigates income inequality. This is more benign than fear-driven wages increases due to labor shortages resulting expelling undocumented workers and building a beautiful wall.

All organizations strive to streamline operations, which in turn should lead to saving money. Fighting the wasting of resources should be a top priority for any government entity and particularly for supervisors, managers, and executives. In the public sector this is particularly true because the citizens in effect supply the resources wasted. The public trust should not be abused by careless or needless spending. However, because of the bureaucratic nature of any government agency, some waste cannot readily be avoided. The laws and regulations that have been duly enacted to secure justified expenditures in and of themselves can cause waste.

First, the objectives across the two accentuated the debacle. Public hospitals are regulated to offer services, while the private counterparts are profit-driven. The state-owned services are invested in serving the community, which led to cheap services. On the other hand, private institutions set prices and extent of services to suit revenue objectives. Moreover, the owners created different tiers of healthcare to suit one’s budget. However, the structure is biased to force people to spend more for “quality healthcare.” Therefore, people are likely to miss quality care in private sector because one could not afford the exorbitant fees in the industry. Therefore, the private hospitals exploited the public on a service that should be based on the ideals of the public contingent.

The need for financial stringency in public organizations due to budgetary pressures and tax resistance coupled with the need to Managing /balancing budget deficits and provide quality services with a reduction in revenue has always been a major challenge for public organizations. The need to save money and at the same time provide quality services, had forced government agencies to privatize and contract out. Recently, there is greater involvement of the private and nonprofit sector in public service delivery. More and more government functions in service delivery are now carried out by private and nonprofit organization. This is one part attributed to the belief that private organizations can provide services more efficiently and effectively than government operated services. And the other is the fact that it is cost effective and takes a lesser time frame. These two process are indeed unarguably beneficial to the government and private sector as well as the beneficiaries, but they can be also very daunting accompanied with huge challenges especially when not executed in the rightful manner. The case of the crummy contractor by Rainey depicts such a complex situation , where the process of contracting out was poorly conducted. The case highlights the demand for privatization and contracting-out and most importantly some of the challenges of privatization and contracting in government organization. it goes on further to identify some crucial pointed to be

could for a given number of work hours. This growth can be attributed to the advancement of

Many aspects of the human life require management to allow maximum efficiency of the subject. For instance, the labor market is governed by policies that dictate how an employee is to be treated by their employers and in some cases, the minimum wage is dictated. The above example is an illustration of how public administrators attempt to control situations that are manmade and that can be controlled. However, there are categories of elements that cannot be controlled or resolved by man 's insistence, but can be managed to allow the maximum efficiency of the deficit resources.

The concept of health to each individual is a very personal thing. To some individuals it can be the absence of disease but to another it can be getting from day to day adequately caring for themselves’ without assistance. The governments’ policies rule health matters a great deal but this leads to problems when their concept of health differs from that of the individual. One of the major problems in health care is the money available for resources.

The alternative service providers vary from public-private partnerships to usage of municipal agencies and other parties outside the public sphere (Peters, 225). These services or goods will then benefit the public or the human resource of the public sphere. Auriacombe and van der Waldt (2014: 70) state that this method assists the government to achieve all desired goals of reengineering, restructuring, right sizing, renewal and ensures the government to deliver its specialized services in an effective, efficient and economical manner. The government now focuses on the things it does best whiles delegating other functions to other sectors to distribute other services and tasks.

There is the need to stress improving organizational and processing procedures. This can be done by the use of technology such as e-gov and management information systems. Also, computer and software applications can make a difference in large education systems, unemployment compensation, retraining, welfare-to-work, and monitoring capital construction programs. The importance to maintain and improve productivity of our government programs. It is very important that we improve productivity of government programs. In this economy we need to be able to cut costs wherever possible, this enables us to do so. It also would limit the amount of involvement and confusion it would bring if we don't improve them. The efficiency as we improve will also be developed.

According to Brown & Jackson (1990), inefficiency in the public sector arises when there is an asymmetry of information between those who demand services and those who supply them. This problem is predominantly evident in education and healthcare due to imperfect information. For instance, a patient (the principle) seeks information and advice from her GP or consultant (the agent) concerning her medical condition (i.e. health status). The doctor has specialist technical knowledge and subsequently in providing information to the patient the doctor

With the coming of information era, people has changed their lifestyle by using Internet and communication technology. ICT has made the process of providing health services, transport system, dealing with governance issue and delivering information in an efficiency way. First and foremost, since the1980s, the liberalization and privatization of transport services has been fiercely discussed in many European countries and concluded with new combinations of public–private arrangements(Weber et al., 2014).this contribution of diminish role in public sector is from the New Public Management principles long term action. Since more than twenty years we can observe a shift in the European that a stronger part now private sector provided in

I. Introduction a. Statement of the problem One of the most critical and gigantic problem which most of the developing countries have been facing is that of poverty and special backwardness. These countries tend to be very anxious to overcome these problems. During the last two decades these developing countries have been initiating a number of development programmes and projects under their development plans aiming at increasing production, adopting technologies for modernization and social change, optimizing use of scarce resources, and above all raising the standard of living of the millions of people condemned to poverty, inequality and unemployment. Thus the public sector growth is one of the natural consequences of planned economy. It is the public enterprises which constitute the most important Institutional framework for achieving these objectives. The problem of poverty, inequality and stagnation in the developing countries to be as daunting as ever in spite of massive programme of modernisation and social change were undertaken by these countries. This has happened due to unsuccessful implementation of development projects. Existence of a plan does not by any means ensure its effective implementation. Effective management is vital for the development of any economy because development itself is the effect of a series of