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UNDERSTANDING THE FULL ECONOMIC AND SOCIAL IMPACTS
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The delivery of public services has been changing for several decades. State and local governments ‐‐ traditionally the provider of many services – are sometimes now only the funder of those services. Instead of directly providing services through their employees, they may contract with outside vendors.1 While this is popularly called ‘privatization’, the term is misleading, since public tax dollars are still paying the bills.2
Since public officials continue to have ultimate responsibility to taxpayers, the more accurate terms ‘outsourcing’ or ‘contracting’ are used here. A trend related to outsourcing has been the lease or sale of publicly held assets to private companies in public‐private partnerships, or ‘P3s’.3 This arrangement is closer to true privatization than outsourcing ‐‐ since more control is delegated to the private company ‐‐but is still quasi‐public.
Daphne T. Greenwood - Personal Name
NONE
Management
English
March 2014
1-43
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