Introduction: The Aims of Privatization

Privatization refers to the shift from government provision of functions and services to provision by the private sector. At base, privatization is a set of strategies for making government more effective. Put in these terms, privatization should-and I predict will-come to command widespread popular and political support; which of our politicians has the nerve to advocate less effective government? For similar reasons, privatization has become the central policy instrument of political interests as diverse as the Thatcher government in Great Britain and the (formerly) socialist Labour Party in New Zealand.