The Privatization Backlash

Source: Molly Ball, Atlantic, April 23, 2014

…In states and cities across the country, lawmakers are expressing new skepticism about privatization, imposing new conditions on government contracting, and demanding more oversight. Laws to rein in contractors have been introduced in 18 states this year, and three—Maryland, Oregon, and Nebraska—have passed legislation, according to In the Public Interest, a group that advocates what it calls “responsible contracting.” … Doing it right, according to Cohen, means ensuring that contractors are subject to standards of transparency and accountability. Private companies doing government work and their contracts should be subject to open-records laws: In 2011, the city of Truth or Consequences, New Mexico, hired a contractor to videotape city meetings, then claimed the tapes weren’t public records. (A state appeals court eventually ruled otherwise.) Companies should be held responsible for cost overruns, and governments should be making sure they’re actually saving money: Many private prisons cost more to operate than public ones, the group claims….The vogue for privatizing government began in the Reagan years, experts say, when an ascendant conservative ideology painted the public sector as a callous and sluggish bureaucracy and the private sector as inherently more innovative and efficient. The trend accelerated in the ’90s, and today, Cohen estimates that $1 trillion of America’s $6 trillion in annual federal, state, and local government spending goes to private companies….