Explaining Privatization Failure: The Vice of Sweet Carrots and Hard Sticks

Roland Zullo

Review of Radical Political Economics, 2019, vol. 51, issue 1, 111-128

Abstract: Why does contracting underperform in the production of publicly financed goods? Producers for private markets survive through marketism, defined as the strategic exclusion of segments of a community, whereas producers of publicly financed goods are pressured to be inclusive. Inclusivity is achieved through universalism, an operational mode with three requisites: (1) a workforce with lateral competency to respond to contingencies, (2) interfunction asset sharing and coordination, and (3) an environment that protects professional discretion. Universalism and marketism are divergent strategies, and public-private contracts cannot cost-effectively resolve their incongruities. JEL Classification: L330, H410, P260

Keywords: privatization; outsourcing; public administration; markets; contracts; competition (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:sae:reorpe:v:51:y:2019:i:1:p:111-128

DOI: 10.1177/0486613417718527

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