June 1987Volume 37, 1987
JUNE 01, 1987 by HANS SENNHOLZ
Privatization transfers services from government agencies to private producers. The efficiency gains that flow from competitive enterprise are to be used to cut spending. Privatization is also said to pay rich political dividends. It creates powerful groups of providers and beneficiaries who profit from the programs. They may be mobilized to support privatization and build a coalition for decisive spending Cuts.