Rather than focusing on the classic legal doctrines infringed by privatization, this article focuses on the somewhat more mechanical problems inherent in the contracts themselves. All contracts for services—whether in the private sector or with the government—involve certain universal transaction costs, yet these transaction costs often go unnoticed in the push to privatize. In addition, there are certain costs or problems unique to government outsourcing contracts that deserve more attention.
Democracy, shared prosperity, and the common good
In the Public Interest is a comprehensive research and policy center on privatization and responsible contracting.