Maximizing Public Good

Maximizing Public Good
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Maximizing Public Good
Hodge (2018) defines privatization as the managerial change from public to private. Governments all over the world have embarked on privatization as a way of improving service delivery and also of increasing revenue collection. Some countries particularly those from the third world countries have also taken the path of privatization, some for political accommodation while others for economic gains associated with the venture. Overall, privatization comes with its strengths and limitations depending on the objective of the country pursuing the plan.
Government services ought to be privatized because it increases efficiency in service delivery and also improves the quality of service. Governments all over the world have saved billions of dollars due to the privatization plan considering private service providers will lower the costs in a bid to remain in business (Hodge, 2018). The competitive nature of the market in private industry also would improve quality of service because entities would want to put forward the best service ever to remain competitive in the job market. There is a greater sense of accountability in private enterprises than in government due to the internal regulatory mechanism that keeps the enterprises in constant check (Hodge, 2018). Moreover, driven by the profit motive, private enterprises deliver quality services to sustain their profit ventures.
Hodge (2018) contends that private enterprises have a body that regulates their operations that ensure that the enterprises act ethically in their dispensation of services.

Some have internal regulatory mechanisms but are bound by the regulatory body which provides that enterprises serve the greater public good and remain within their ethical boundaries. Ideally, making a comparison between the outcomes of a privatized service and a regulated government service can provide a good measure. For instance, Pennsylvania Gov. Ed Rendell and former mayor of Philadelphia privatized 49 city services and ended up saving $275 million (Hodge, 2018). Besides the savings, the quality of service significantly increased due to the competition that exists in private enterprises. Driven by the profit motive, private enterprises offer quality services to ensure that they remain the service providers of choice.

References
Hodge, G. (2018). Privatization: An international review of performance. Routledge.