PUBLIC ENTERPRISES AND SERVICE PROVIDERS IN INSTITUTIONAL COMPETITION AND UNDERGOING STRUCTURAL CHANGE New challenges to the theory of public economics and public services in Germany

Helmut Cox

Annals of Public and Cooperative Economics, 2008, vol. 79, issue 3‐4, 527-547

Abstract: ABSTRACT**: In recent years the public sector has undergone structural changes: privatization, competition, compulsory competitive tendering, award of public service provision to private bidders, state as guarantor of public service provision. It must be asked, whether these changes are causing the dualistic structure of the specific German Social Market Economy to move in the direction of a more uniform typically private economy. One must ask also, which are the impacts of these changes on the German Theory of Public and Social Economy. This is characterized by the dualism of public and private economy. In this contribution the German system of Social Market Economy and the German Theory of Public Enterprises will be analyzed for this purpose. It results from the analysis that there will be in future a more or less intensive institutional competition on public services between public, public‐private, task regulated private enterprises, cooperatives, and social organisations. Therefore the German Theory of Public Enterprises must be newly defined, adapted and developed to a new Theory of Public Services in a competitive environment.

Date: 2008
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