Privatization: Towards a Concept for Comparative Policy Analysis

Abstract

ABSTRACTAffected by the ideological symbolism and political controversy surrounding privatization, much of the work on this subject is marred by definitional uncertainty; what should be included in the concept? To get away from this, and to prepare the ground for meaningful comparative analysis of the phenomenon, I propose both a definition and a taxonomy. I argue that it is the active and conscious transfer of reponsibility from the public to the private realm that should form the core of the concept. Furthermore, I argue that neither the principles for, nor the level of, provision of goods and services should be included in the definition. Finally, I propose that the taxonomy should be based on the public/private dichotomy of responsibility allocation included in the definition, as well as on three main activities in goods and services production which the government could privatize; regulation, financing, and production.