Master this deck with 21 terms through effective study methods.
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Load shedding refers to the government's withdrawal from the provision of goods and services, allowing these to be supplied by the marketplace or voluntary organizations.
Alternative delivery systems involve the government playing a limited role in service provision, with services being provided through voluntary arrangements, competitive markets, franchises, vouchers, grants, or contracts.
Imposing user charges for goods and services exposes the true costs, which can increase the chances for alternative delivery systems to emerge, such as in water, electricity, and parks.
Restoring competition aims to minimize government monopolies by creating alternatives and fostering a favorable climate for citizen-consumers of public services.
Benefits of privatization include reduced government service costs, improved service quality, avoidance of start-up costs, increased responsiveness to customer demands, and an ideological stance that government should limit its role to areas where private entities cannot operate.
The government can use service contracts, management contracts, and lease contracts to engage private companies for specific services, operational responsibilities, and maintenance of facilities.
A service contract is an agreement where the government contracts a private firm to provide a specific service for a defined period, such as street lighting or garbage collection.
A management contract allows a contractor to take over the operation and maintenance of a service facility for a specified time, with the freedom to make routine management decisions.
A lease contract involves companies assuming responsibility for the operation and maintenance of non-fixed capital assets, such as leasing state-owned industries or utilities.
Public-private partnerships aim to provide goods and services that were traditionally the responsibility of the government, through various arrangements like contracts, concessions, and joint ventures.
PPPs can increase competition and efficiency, expand coverage, reduce delivery costs, and allow for optimal risk allocation between public and private sectors.
The private sector's involvement in PPPs ensures that projects are subjected to commercial discipline and sound financial due diligence, leading to better management and innovation.
Build-operate-transfer agreements allow private companies to build major infrastructure projects, recoup their investment, and then transfer ownership to the government.
Passive public investment involves government grants, equity investments, loans, or guarantees to encourage private sector participation in public interest projects, such as housing for the poor.
The two kinds of privatization are the private provision of services with a public character and the return of government-owned property or functions to the private sector.
The ideological benefit of privatization is the belief that government should not provide goods and services that private and non-profit organizations can deliver effectively.
The three basic types of government privatization are the sale of government assets, private financing of public facilities, and private provision of services.
Economic globalization pressures the private sector to respond quickly to world market demands, filling gaps where government services may be slow or inefficient.
Governments may corporatize quangos to enable them to compete with private firms, cover their costs, and manage their affairs more efficiently.
Deregulating public agencies allows the private sector to compete with state quangos, potentially improving service delivery and efficiency.
Privatization is part of managerialism reform, which seeks to promote efficiency and productivity in service delivery, aiming to provide taxpayers with the best deal.