Higher costs to consumers, cost overruns, and hidden costs to the government and the community
What's at Stake
Costs
Quality
Reduced quality of services and the degradation of assets through poor maintenance
![Accountability and Transparency](http://www.inthepublicinterest.org/sites/default/files/imagecache/taxonomy_index_thumbnail/category_pictures/acct-transp.jpg "• Lack of public information and open records • Lack of public input on decisions affecting the public interest • Loss of recourse if the public is harmedDemocratically elected governments are accountable to voters and their processes are open to public scrutiny. Privatization shuts the public out of decision-making that deeply affects the public interest.Terms of privatization contracts often are decided behind closed doors, without any public input. In some cases, the public is unaware of the possibility of a privatization deal until the contract is almost finalized. A prime example is the privatization of Chicago’s parking meters, which was planned and negotiated without public knowledge, and left the public extremely unhappy with the outcomes.Transparency also refers to the public’s ability to obtain information regarding government contracts. While government documents generally are available through open records requests, private companies can shield information from public view by claiming it has a proprietary status.Another important aspect of accountability and transparency relates to the government’s ability to properly manage contracts. Contracts and governmental policy must contain adequate mechanisms for monitoring and oversight to ensure contract compliance and hold contractors accountable for contractual abuses and the failure to deliver on promised deliverables.In many large complicated contracts, it is difficult to hold companies accountable partly because no one can anticipate all possible contingencies and set consequences, and partly because companies may be able to shield important information from the government. Furthermore, governments that have sunk a lot of time and money into a contractual relationship may choose not to hold the contractor accountable for fear of losing that initial investment or the transaction costs associated with contract cancellation.As the Blackwater Nisoor Square case shows, it can be difficult for the government to hold a private company accountable for even the most heinous actions. A New York Times editorial titled "Privatized War and Its Price" (January 2010) noted that in dismissing charges against Blackwater agents for killing civilians in Iraq, a federal judge "highlighted the government’s inability to hold mercenaries accountable for crimes they commit."")
Accountability and Transparency
Lack of public information, lack of public input in decisions affecting the public interest, and loss of recourse if the public is harmed
Access
Loss of public access to services or assets, and inequitable access based on race, class, income, gender, or other factors
Corruption
Conflicts of interest, insider dealings, kickbacks, price-fixing or bid-fixing, fraud, misconduct, and revolving doors between government and contractors
Environment
Practices that are wasteful or harmful to the environment, inadequate assessment of environmental impact, and bypassing environmental regulations
Core Public Capacity
Loss of institutional knowledge and workforce capacity to perform public functions, and loss of the ability to recruit and retain staff if the contractor fails or leaves
Human Rights
Violation of human rights and basic constitutional rights, privacy violations, and the lack of adequate avenues for redress
Workforce issues
Loss of wages and health benefits, reduced labor standards, worksite safety problems, and inequitable treatment
