An Analysis and Comparison of Alternative Arrangements Advantages and disadvantages of each arrangement are pointed out, and the question of which arrangement to use when there is a choice is decreased. Applications in Physical and Commercial Services Privatized arrangements like contracts are more efficient in solid waste collection, transportation, and street services, as these are private or toll goods. Water supply, communication, or state owned property, even though historically public goods, may be provided efficiently through private provision. Although government is interested in the fundamental safety of citizens, privatization has been successfully applied to protective and human services, such as public safety, national defense, health care, education, and social services. Vouchers, market arrangements, and contracting have been used.
Contracting is the most common.
Each privatized arrangement requires certain conditions in order to be successful and fully effective. Many of the problems reported for human service contracts result from the difficulty of specifying the desired results of the services and from faulty implementation. Political, bureaucratic, and employee resistance must be overcome. There may be legal impediments to novel arrangements and problems with long term contracts.