By Tom Entwistle and Rhys Andrews
Caught between falling tax revenues and increasing expenditures, governments across the world are looking for new ways of extracting economy and efficiency from the public sector. As in the past, the claim that business can deliver public services more efficiently than the state, provides a key inspiration for reform.
Governments can engage the private sector in public service delivery in a number of different ways. They can open clearly specified functions – like cleaning, refuse collection or grounds maintenance – to a competitive tendering process and then contract with the organisation which promises best value. Alternatively, they may externalise – or, in more loaded terms, ‘privatise’ – the delivery of a whole service, Continue reading