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Reasons for Privatization
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.)
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