Privatization Of Public Services
Privatization can be explained as the transfer of a business, Industry or services from public to private ownership and control. In this case all Government functions and services are also transferred. The New Orleans sector of interest for privatization was the water and waste services sector. The privatization plans were thwarted initially by the loss of support from the political class. Ideally all water privatization proposals were to be reported extensively in the media beforehand (Miranda & Lerner. 1995).
Proceeds of Privatization of public services influencing education and public health would be channeled towards re-establishing the gynecology clinic based at lake Charles, reopening of operating rooms and orthopedic clinic that was previously closed down due to budgetary constrains. This transfer of the public services is work in progress as the number of graduate medical residents has increased, a breast health clinic and cardiology section have also been added. Privatization of the water and sewerage sector ensured cost-effective and reliable services to the consumers. It also ensured proper utility and disposal of wastewater hitherto missing in the government management period.
The Principal -Agent theory is influenced heavily by the privatization. After privatization of a state corporation, shareholders may own the estate but would rely heavily on the company directors to inspire solvency in their venture. Shareholders therefore delegate management of the company to the directors. In the wake of privatization of services, government sought to implement policies aimed at creating a climate for self-sustaining growth and development. Industry players alluded privatization to government view that a single agency operating within a defined program is able to achieve impetus faster than to the local authorities due to bureaucracies.
Some inherent areas of concern in privatization are mostly social amenities such as health centers, education water and sewage utilities. Therefore the government or any department under the private sector should privatize the public services by at least 30% considering the potential deterioration in customer’s service due to extreme cost cutting measures.
References
Haque, M. S. (1996). Public service under challenge in the age of privatization. Governance, 9(2), 186-216.
Miranda, R., & Lerner, A. (1995). Bureaucracy, organizational redundancy, and the privatization of public services. Public Administration Review, 193-200.
Wollmann, H., & Marcou, G. (Eds.). (2010). The provision of public services in Europe: Between state, local government and market. Edward Elgar Publishing.