Public Services Privatization Essay

Under the NPM umbrella, public sector has also been experiencing a shift to greater competition. The need to remove monopoly of service delivery and create contestability, through privatization, public tendering, and term contracts, justifies the adoption of competition principle (Dunleavy 1994; Hood 1991). Insisting to do bureaucratic provision on public services instead of contracting them out, knowing that private sector can deliver them better, it is believed would only force governments to lose comparative advantages on price, efficiency, and effectiveness (Dunleavy 1994. p.49). This way, governments are able to fulfil their responsibility in providing services and the financing, while simultaneously stimulate greater competition among providers under market dynamics. However, it is hard to instigate public service ethos in private parties. Therefore, the capacity of private entities to act consistently with the public interest is greatly questioned in this scenario. Are concerns such as public health and safety, environment sustainability, and social equity likely to be sacrificed underneath market mechanisms? When power is shared with organizations which have business objectives apart from government’s goals, the fundamental issue is how to detect which missions they are carrying out. Many public services being delivered by third parties are targeted for vulnerable sections of the community which can pose a higher risk of potential abuse, neglect, exploitation, and

Why is contracting out so attractive to a public agency? Privatizing has its advantages that represent benefits to the agency.

with the public sector. Privatization refers to shifts in ownership from government to private for-profit

opportunity of privatization and why the CPS should or should not privatize its services. Also,

Combating for public reform in the areas of taxation and policies for the wealthy will make positive difference in the economy. Income inequality has been increasing since 1970 (Hatch). One way to battle this issue is to vote to increase taxes among the wealthy. Though, this will not in a sense create income equality however, it would promote additional income and income distribution to lower income households. Through this method the standard income requirements to be eligible for the Earned Income Tax Credit (EITC) could be lowered, this provides a tax credit to qualified working family units. The EITC helps to reduce inequality among some working families, as this is common example redistribution of our nation’s wealth (Hatch).

In this article, they give potential reformation and privatization thoughts. Additionally, there are statistics and predictions to back their thoughts. The predictions are about both the potential and actual futures of Social Security. This article is predominantly useful for using numbers to determine the best potential path to make with Social Security.

During the late nineteenth century, the United States began to undergo changes with the passing of the Pendleton Act in 1883, the growth of anti-statism, and changes in society due to the Progressive Movement (Stillman, 2010). In response, Woodrow Wilson wrote his essay, “The Study of Administration”, which addressed the developing need for “a science of administration” (p. 8) to be implemented in the United States (Stillman, 2010). In his essay, two themes emerged (Denhardt & Denhardt, 2011). The first was that administration should run like a business to increase and maximize efficiency (Stillman, 2010). The second was that the functions of politics and administration should be separate, where elected officials were accountable to set the law and administrators were responsible to execute that law in a neutral manner; currently referred to as the PA Dichotomy (Stillman, 2010). Unknowingly to Wilson, his essay would start a movement serving as the cornerstone for the study of public administration in America (Stillman, 2010).

Publicness or public quality of public service, the recent transition toward a market driven mode

The value in the memo is that privatization of public services considered as “anti-American” as well as “assault on our unions” that protect the union workers. The author who is being with the union and author’s value assumptions is debatable. Author was biased to the union and expressed author’s point of view based on work experience as well as personal events that happened to author’s family members in the past. In the statement, the author believes that Governor’s action was going to affect not only to their current APEU union members but the whole America due to privatization. There is no clear demonstration or fact that privatization was “anti-American” and in some cases the privatization of public services helped the state with more money and the public service rendered efficiently and professionally (Kittower, 2007).

Public sectors are government controlled services that provide for both basic and essential needs of the general community. The content of government sectors varies between countries, however in most countries these include Police, Health care, Fire brigade, Military, Public transport etc. (PrivacySense.net, 2014).

In order to understand the reasons behind privatisation of public services, it is essential to study the socio-political environment of the UK in the 1970’s. During this period of time, the UK was hit by the post-war crisis, which led the Tories British political party, also known as the Conservative Party, to lose dominance in the parliament. During this time, in the Ridley Report, the Thatcher shadow cabinet started suggesting about the need to break up the public sector and to disjoint unions. Initially, privatisation was subordinate to other policy themes. Nonetheless, during Margaret Thatcher’s governance starting in 1979, a certain degree of privatisation was put in place, notably regarding British Aerospace and Cable & Wireless (1). Nonetheless, during this period of time, the government’s aim was to privatise profitable entities, in order to increase revenues and therefore minimize borrowing from the public-sector.

According to Robert B. Denhardt, Public Administration an Action Orientation, privatization "is the use of non governmental agencies to provide goods or services previously provided by government." (P.95). Privatization comes in various degrees, from the outright selling or transfer of government ownership of assets (for example public utilities), to, as is more common in the United States - the contracting of goods or services to private firms.

One of the many arguments is that most, if not all public sector service(s) service is monopolistic. Often time, there is one source of supply for a government service. For example, residents of a city have one fire department, one police department, and one system of public education. Even though each of those entities, many of them have different branches, they are all fall under

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

Beginning in the 1980s, many jurisdictions started to seek third-party alternatives to provide public service under the pressure for cost savings and the call for government efficiency. Private organizations are known for their expertise in specific fields – if leverage private sector know-how well, it can bring success to public sector – high quality public services can be delivered with lower costs. Therefore, public organizations can concentrate on solving critical tasks when they contract out the mundane work to private sector. Outsourcing waste management is one of the effective privatization solutions for public organizations given its easy-to-measure nature, and it continues to be popular among local governments. Nevertheless, the success of privatizing government services is not guaranteed. If not manage privatization well, it could result in increased costs, organization structure and culture change or legal liabilities. In addition, take advantage of privatizing public services redefines the nature of government service and governance as it creates a partnership between private and public sector. With the rapid pace of technology development and the obligation of government to spend taxpayer’s money strategically, privatizing government services has gained unstoppable momentum.