Privatization of Welfare Services: A Review of the Literature. Rationale for Privatization


Several basic arguments are often cited to support a shift from government to private provision of public services including: (1) reducing the cost of government services; (2) improving the quality of government services; (3) the need for skilled staff not available in the public sector; and (4) increasing the flexibility of the public sector. (GAO 1997c; Savas 1987; Donahue 1989; Reason Foundation; Nightingale and Pindus 1987; Blank 1999). In addition, privatization also occurs for political reasons.

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