Cost Effective Alternatives for Delivering Public Services: Case Study Battle Creek
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Authors
Van Bruggen, Kelly
Issue Date
1991
Type
Thesis
Language
en_US
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Abstract
The City of Battle Creek holds claim to many industrial and residential resources. However, the city faces many difficulties which must be overcome before the city can escape the negative opinions held by many people. Restraining budgets and increasing
costs have made must solutions to these problems not feasible.
One solution to many cities' problems throughout the United states has been privatization. This alternative delivery system reforms the manner in which the public services are delivered. By allowing the private sector to deliver public services, the service is usually provided at a lower cost and with better quality.
The effectiveness of privatization exists in the magic of the free market. Privatization integrates the positive characteristics of a private firm, such as incentive structures and accountability, into the delivery of public services, which results in the
incentive to lower cost and improve quality.
The stronghold to privatization is maintaining a competitive atmosphere. The best way for city government to insure this
competitive atmosphere is with effective contracts. The key to an
effective contract is devising one which creates competition within
time and space.
Privatization has been used by many countries during many
periods of time. Privatization may have taken different
definitions in these countries, but the basic qualities of the
principle applies in every situation.
The private sector can participate in the privatization
process through several different roles. These roles include "turn
key design," joint ventures, "contracting out," and "load
shedding".
Numerous examples exist of how privatization has been used in
various cities throughout the United States to reduce costs,
generate revenues, and provide quality services.
Opponents to privatization cite common complaints such as the
loss of public employees' jobs and the possible risk of placing
needed services at the mercy of profit-seeking firms.
The economic growth experienced in the United States is a
direct result of the intrinsic vitality of the market system, not
the growth of government. Privatization embodies every aspect of
the free market and therefore could only benefit localities.
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63 p.
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