Something dramatic is happening in Indianapolis, Indiana. The quality of public services is rising.
Competition is the cornerstone of Indianapolis's current prosperity.
That test holds that if the phone book lists three or four private companies that offer a service the government provides, that service will then be opened to bidding. Both private and governmental service providers are encouraged to compete for city contracts. When Goldsmith solicited bids for the repair of city vehicles, government employees were allowed to compete with private mechanics. To avoid being underbid, the government employees reorganized, made their operation more efficient, and won the contract. This competition has caused repair costs to drop 29 percent and customer complaints to plummet more than 90 percent.