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Privatization of the State: Are Private Finance Initiatives, which include the public sector, inefficient or harmful?

  • Private Finance Initiatives are Inefficient

    Private Finance Initiatives, which include the public sector, are inefficient or harmful. Using Private Finance Initiatives increases the cost of funding public investments in comparison to what one could get if the government borrowed using its own account. Private Finance Initiatives cause the price of finance to be much higher.

  • No, private is more efficient.

    No, private finance initiatives that include the public sector are not inefficient or harmful, because the private sector can often to a better job than the government, and often at a fraction of the cost. Working on government contracts allows the government to tap the best of the private sector in order to solve government problems and offer services.


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