Privatization And E-Government

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Recommended: Advantages and disadvantages of contracting out of privatization

Government performance is continuing to be improved by using various tools wisely. There are four major tools nowadays, including privatization, contracting out, public-private partnership and e-government. In fact, not all the tools are effective for improving government performance in terms of the distinctiveness of the public sector. If a tool seriously weakens the distinctiveness of the public sector, it would be considered as an ineffective tool. And ‘seriously weaken’ means that a tool makes the public sector hard to be reorganized as it does not to fulfill its main archetypal principles. Three main archetypal principles are going to be pondered, including complex accountability, difficulties in measuring output and public value orientation. Therefore, if a tool is able to remain those principles, it would be an effective tool. Before evaluating four tools, I would briefly define them.

First of all, privatization is a tool which includes a permanent transferring from government to the private sector in whole. Generally, privatization means that there are asset sales from the government. And the decision of privatizing has been fixed since it completed. As Van R. & Paul (2007, p.233) clarify, these organizations still operate the public services provided by the government previously.

Second, contracting out means that government shifts the operation to private sector or another government agency (Van R. & Paul, p.234). Comparing with in-house provision, only the providers are different and other conditions are remaining the same. Contractors may rely on government’s funding and they are required to follow the ideas from public decision makers in order to conserve public values. Even contracting out is a form of privatiza...

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...ng output is seriously weakened the distinctive nature of the public sector. Sometimes simplicities in measuring output is representing to the results-focused. And the result is always referring to the profit-making. Therefore, contracting out is ineffective as it easily inclined towards the characteristic of private sector step by step and made the public sector hard to be reorganized. For privatization, it comprehensively violates the archetypal principles in public sector as it contains plain accountability, simplicities in measuring output and private value orientation. That is why privatization can be determined as a tool seriously weakens the distinctive nature of the public sector. Eventually, after considering the distinctive nature of the public sector, only public-private partnership and e-government are most effective for improving government performance.

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