The
current rush to privatize is rooted in the widespread belief that
state-owned enterprises are inefficient. While there could be merit
in this assumption, one might expect that specific programs would be
subjected to fact finding before the complex solution of
privatization is pursued.
The
results of an operational review may support relatively easy
solutions such as the outsourcing of specific governmental tasks or
the substitution of suppliers where activities are already being
outsourced. (The mere act of rebidding could have salutary effects
on the performance of an existing supplier.)
