Consider the problems of privatization mentioned in the text. Explain why some privatization contracts might resemble partnership agreements.
Privatization is considered a way of improving productivity and reducing the government's role in offering public services. However, privatization may have some problems as some of its contracts may resemble partnership agreements. Berman (2015) describes one problem of privatization as competition. He argues that efficient private sectors can beat the government in service delivery. This can be seen from the challenges faced by the New York government. Drawing from the article, “Collaboration between Unions, Citizens, & Municipalities: Toward a Common Narrative,” the New York local government strains with funding government organizations ( Bárcena-Ruiz et al., 2019) ; hence it decides to privative them.
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The majority of the leaders involved in this process are corrupt and believe that the process will yield better results, damaging their reputation. As a result, they frame the private sector. For example, the Framing of St. Paul Federation of Teachers, which provided better services, operated under a negative framework due to corrupt government policies ( Sarah et al., 2014 ). The privatizing officials who were involved in transforming its management reported negative results about the federations for years. Eventually, the federation refuted these stories and decided to change the entire official system of people who worked outside the organization, and the story changed.
Although privatization is viewed as competition to government's operation management, there is a deeper explanation of these improvements: the contract aspect ( Mosannenzadeh et al., 2017 ). Here, it should be noted that privatization involves the delivery of public services, perhaps more efficiently, but not policymaking. For instance, privatized hospitals provide standardized services, but the new management has no right to alter the healthcare policies offered by the government. On the other hand, the government acquires more money through privatization to improve other areas of public development ( Kumar et al., 2020) . Therefore, under proper management, privatization can be seen as a partnership agreement.
References
Berman, E. M. (2015). Performance and productivity in public and non-profit organizations . Routledge.
Mosannenzadeh, F., Bisello, A., Vaccaro, R., D'Alonzo, V., Hunter, G. W., & Vettorato, D. (2017). Smart energy city development: A story told by urban planners. Cities , 64 , 54-65.
Sarah, C., Zach, C., & Michelle, M (2014). Collaboration between Unions, Citizens, & Municipalities Toward a Common Narrative . Cornell University.
Bárcena-Ruiz, J. C., Dong, Q., & Wang, L. F. (2019). Foreign-owned firms and partial privatization of state holding corporations. The Japanese Economic Review , 1-15.
Kumar, H., Singh, M. K., Gupta, M. P., & Madaan, J. (2020). Moving towards smart cities: Solutions that lead to the Smart City Transformation Framework. Technological forecasting and social change , 153 , 119281.
