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The (alleged) rise of reverse privatisation: causes, effects, and implications for public service delivery

Bart Voorn and Ina Radtke

Chapter 19 in Research Handbook on Privatisation, 2025, pp 375-388 from Edward Elgar Publishing

Abstract: In this chapter, we delve into the concept of reverse privatisation, which involves the process of bringing previously (partially) privatised services back under (partial) public ownership or control. The study of reverse privatisation highlights the strengths and limitations of administrative reforms centered on market-based solutions and emphasises the challenges in striking a balance between efficiency, effectiveness, and democratic accountability in public service delivery. The increasing research into reverse privatisation contributes to the development of more nuanced and context-aware strategies for reforming the public sector by assessing the manifestation of this trend. We present illustrative cases at both the national and municipal level for the two main forms of reverse privatisation: the re-organisation of formerly privatised public organisations or state enterprises and the insourcing of formerly outsourced public services. Next, we explore the multifaceted reasons and driving forces that push governments to reassert control over previously privatised services that range from crisis events to cost and efficiency considerations. Subsequently, we examine the effects and implications of privatisation reversals and hereby show that this phenomenon does not only affect the governance and conduct of public services but also the legitimacy of politico-administrative systems. The chapter concludes with an outline for a research agenda for future studies on the topic of reverse privatisation.

Keywords: Reverse privatisation; Remunicipalisation; Renationalisation; Public ownership; Accountability; Efficiency (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035309979
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