Reinventing government
If not carefully structured, markets that look competitive
Also succumb to monopolistic power. In both contracting
Procurement systems, for example, some projects are so
Sive that for all practical purposes it is impossible to switch
Viders once the job has begun. Defense contractors who
Submarines and ships enjoy this protection; it explains why
Get away with endless cost overruns and seem impervious
Sanctions. A similar problem is emerging with private corpor
Tions that contract to operate prisons, many of which demar
20-to 30-year contracts. “There is some reason to fear that in
Stead of being competitive like the trash collection industry
John D. Donahue wrote in The Privatization Decision, prise
Management “will be competitive like the nuclear-submarin
Industry-which is to say, not at all.”
Even when private firms do not have monopolies, they times develop enough political power to stifle competition.
Mass transit, private bus companies spend considerable sums
Influence legislatures, to get and keep their contracts. In garba
Collection, large private firms use their power to lobby again
Policies that would reduce the volume of garbage, such as
Cycling and source reduction. Even in day care, private firms to
To restrict the competition.
This pattern suggests that governments would be wise to der
Firms with which they do large volumes of business the right
Lobby or make campaign contributions. Such prohibitions
Have constitutional problems when applied by law to all priva
Firms, but they can certainly be written into specific contracts.
A company wants the public sector’s business, it simply agree
To forgot any effort to influence public policy in related area
The conflict of interest is obvious.
None of this is to say that public monopolies don’t requin
The same careful oversight. Oversight. The postmasters sent enormo
Volumes of free mail to lobby Congress for a rate hike in 199
School principals in Chicago used to eliminate the refrom pro
Gram that took away their lifetime job security. A public employee union in Michigan sued to block the state from
Contracting out job training for welfare recipients. Rural Metr
A private firm that operates fire departments in some 30 con
Reinventing governmentIf not carefully structured, markets that look competitive Also succumb to monopolistic power. In both contractingProcurement systems, for example, some projects are soSive that for all practical purposes it is impossible to switchViders once the job has begun. Defense contractors who Submarines and ships enjoy this protection; it explains whyGet away with endless cost overruns and seem imperviousSanctions. A similar problem is emerging with private corporTions that contract to operate prisons, many of which demar20-to 30-year contracts. “There is some reason to fear that inStead of being competitive like the trash collection industryJohn D. Donahue wrote in The Privatization Decision, priseManagement “will be competitive like the nuclear-submarinIndustry-which is to say, not at all.” Even when private firms do not have monopolies, they times develop enough political power to stifle competition.Mass transit, private bus companies spend considerable sumsInfluence legislatures, to get and keep their contracts. In garbaCollection, large private firms use their power to lobby againPolicies that would reduce the volume of garbage, such as Cycling and source reduction. Even in day care, private firms to To restrict the competition. This pattern suggests that governments would be wise to derFirms with which they do large volumes of business the right Lobby or make campaign contributions. Such prohibitionsHave constitutional problems when applied by law to all privaFirms, but they can certainly be written into specific contracts.A company wants the public sector’s business, it simply agreeTo forgot any effort to influence public policy in related area The conflict of interest is obvious. None of this is to say that public monopolies don’t requinThe same careful oversight. Oversight. The postmasters sent enormoVolumes of free mail to lobby Congress for a rate hike in 199School principals in Chicago used to eliminate the refrom proGram that took away their lifetime job security. A public employee union in Michigan sued to block the state fromContracting out job training for welfare recipients. Rural MetrA private firm that operates fire departments in some 30 con
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