By E S Savas
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Extra resources for Privatization and Public-Private Partnerships
More than 100 independent studies are summarized, representing a wide range of services, including maintenance at military bases, property assessment, nursing home operation, claims processing, postal services, railroad repairs, automobile towing, forestry, slaughterhouses, and weather forecasting. S. studies examined federal, state, county, and municipal services. These studies are of uneven quality compared to the previous studies cited in detail, and some represent simple, individual, before-and-after studies.
Competition. 5-OTHER STUDIES OF PUBLIC VERSUS PRIVATE SERVICE DELIVERY Service area Findings Maintenance support for air force bases Contracting reduced cost 13% by use of 25% fewer personnel; achieved improved availability of parts and planes. Airline operation Efficiency measures of private airline were 12% to 100% higher. Airports Airports subject to market forces had savings of 40%. Property-tax assessment Private assessments were 50% less extensive and more accurate. Cleaning services In-house work cost 15% to 100% more.
The studies typically found cost reductions of 20 percent to 50 percent resulting from privatization. Why Contracting Works The reason that government services are so often both costly and poor is not that the people who work in government are somehow inferior to those who work in the private sector; they are not. In fact, the issue is not public vs. private but monopoly vs. competition. 5-OTHER STUDIES OF PUBLIC VERSUS PRIVATE SERVICE DELIVERY Service area Findings Maintenance support for air force bases Contracting reduced cost 13% by use of 25% fewer personnel; achieved improved availability of parts and planes.
Privatization and Public-Private Partnerships by E S Savas
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