Coproduction and Privatization: Exploring the Relationship and its Implications

Abstract

The use of privatization and coproduction are among the most frequently proposed methods of responding to fiscal stress in local government as well as to dissatisfac tion with the performance of the public sector. Conservatives offer reduction in the role of government and more reliance on the private sector as a means of increasing efficiency and an ideological end in itself. Liberals look to the use of citizens as coproducers of public goods and services to gain greater flexibility and innovation, responsiveness and cost reductions in government. This article identifies three models of privatization, examines their relationship to coproduction, and considers the implications of increased use of privatization for coproduction and public policy more generally.