The Two Faces of Privatization

To reduce the size and scope of government in the delivery of public services, load-shedding to the private sector or other privatization arrangements (e. g., contracting, vouchers, more extensive use of volunteers or self-help) have been advocated. This article first examines this prevalent face of privatization and then explores the relationship between privatization initiatives and two perennial concerns of American democracy--citizenship and community. A number of heuristic models are offered to elucidate the role of citizens under various service delivery arrangements. The article concludes that, while privatization may improve service delivery efficiency, the desire for cost savings must be balanced against more normative issues. Service delivery arrangements that ensure competition and allow active citizen participation are viewed as most compatible with traditional American values.