Privatization: An International Review Of Performance

by Hodge,Graeme

• ISBN13: 9780813366814
• ISBN10: 081336681X
• Format: Nonspecific Binding
• Copyright: 1999-12-31
• Publisher: Routledge

Summary

Contracting out public sector services and divesting public enterprises are reforms that have enjoyed widespread global popularity in recent years. Better services, lower prices and greater accountability are the promises made by politicians, senior executives, and investment companies when functions are moved from the public sector to private enterprise. But inPrivatization, Graeme A. Hodge challenges these assumptions. Through an examination of hundreds of international studies on the performance of privatization activities, Hodge demonstrates that privatizing public services is often not the guaranteed panacea portrayed by its political supporters. Importantly, privatization activities can lead to modest gains, but there are also winners and losers in this reform. It therefore deserves far more care and balanced debate than it usually attracts.

Author Biography

Graeme Hodge is director (research) at the International Centre for Management in Government, Monash Mt. Eliza Business School, Monash University, Australia. He is the author of two previous books and many research papers in management, social and economic policy, and public administration. Widely acknowledged as a leading authority on privatization issues, he has been appointed adviser to Parliamentary Inquiries, and consults to federal, state, and local governments throughout Australia.

Table of Contents

List of Tables and Figures	ix
Acknowledgments	xiii
List of Acronyms	xv
Part I Concepts Underpinning Privatization
Introduction	3	(10)
Waves of Reform	4	(3)
Aims of This Book	7	(1)
Importance of Carefully Reviewing Privatization	8	(1)
Structure of the Book	9	(4)
Privatization Patterns	13	(22)
Defining Privatization	13	(4)
Privatization Objectives	17	(1)
Objectives When Selling an Enterprise	17	(7)
Objectives When Outsourcing	24	(1)
Occurrence Patterns: Selling Enterprises	25	(3)
Occurrence Patterns: Outsourcing	28	(3)
Privatization Trends over Time	31	(4)
Theoretical Foundations for Privatization	35	(14)
Models Underpinning Privatization	35	(1)
Public Choice Theory	36	(2)
Agency Theory	38	(1)
Transaction Cost Analysis	39	(1)
Managerialism/New Public Management	40	(1)
Property Rights Theory	41	(2)
Measurement Issues	43	(1)
Historical/Contingency Theory	44	(5)
Part II Performance Evaluation Framework
Performance Framework for the Assessment of Effectiveness	49	(10)
Performance Domain Based on Privatization Models	49	(1)
Performance Domain Based on Privatization Objectives	50	(1)
Performance Domain Based on Public Sector Activities	50	(5)
Combined Performance Framework	55	(4)
Review Methodology	59	(18)
Integrating Research Studies	60	(4)
The Meta-analytic Approach	64	(5)
Statistical Characteristics: The Effect Size Concept	69	(3)
The Application of Meta-analysis to Privatization Performance	72	(5)
Part III Empirical Knowledge of Privatization Performance
Performance Data for Privatization as Contracting Out	77	(20)
Searching for Data	77	(3)
Study Selection Process	80	(8)
Characteristics of the Literature	88	(9)
Reviewing the Effectiveness of Privatization as Contracting Out	97	(60)
A Look at the Empirical Findings	97	(3)
Some Key Historical and Methodological Highlights: Refuse Collection	100	(3)
Narrative Review of Contracting Out Public Sector Services	103	(4)
Economic Performance	107	(3)
Effect Sizes: Economic Performance by Service	110	(7)
Contracting Out and Contracting In	117	(2)
Other Possible Moderator Variables	119	(2)
Meaning of Effect Size Findings	121	(4)
Other Issues in Cost Comparisons	125	(3)
Conclusions on Cost Savings	128	(1)
Social Performance	129	(7)
A Meta-analysis of Noneconomic Performance Measurements	136	(6)
Democratic Performance	142	(10)
Legal Performance	152	(1)
Political Performance	153	(2)
Conclusions	155	(2)
Performance Data for Privatization as Enterprise Sales	157	(16)
Searching for Data	157	(7)
Characteristics of the Literature	164	(9)
Reviewing the Effectiveness of Privatization as Enterprise Sales	173	(56)
Economic Performance	175	(11)
Meta-analytic Review of Economic Performance	186	(12)
The Meaning of Effect Sizes	198	(4)
Social Performance	202	(1)
A Narrative Review of Social Performance	202	(8)
Meta-analytic Review of Social Performance	210	(3)
Democratic Performance	213	(6)
Political Performance	219	(5)
Legal Performance	224	(1)
Conclusions	225	(4)
Learning to Get the Balance in Privatization	229	(20)
The Learning Philosophy	230	(1)
Theory	231	(1)
The Effectiveness of Contracting Out Services	232	(4)
Do Contracting Benefits Outweigh Costs in Public Sector Services?	236	(3)
Private Sector Firms and Markets	239	(1)
Probity, Accountability, and Governance	240	(2)
The Effectiveness of Selling Enterprises	242	(3)
Conclusions	245	(4)
Appendix A: Key Statistical Tests	249	(2)
Appendix B: Literature Review Search Terms for Databases	251	(2)
Appendix C: Summary of Effect Size Derivations for Privatization as Contracting Out	253	(4)
Appendix D: Summary of Effect Size Derivations for Privatization as Enterprise Sales	257	(6)
Notes	263	(18)
References	281