Privatization, in its broadest sense, is the transfer of assets or services from the tax-supported and politicized public sector to the entrepreneurial initiative and competitive markets of the private sector. Done properly and with care, privatization harnesses the powerful market forces of competition, accountability, and incentive. State and local governments have routinely experienced cost savings of 10 to 40 percent through privatization, and often with improvements in the way an asset is managed or a service is delivered. The most common form of privatization contracting out to private firms-has become more than just a trend. With decades of experience, it has become something of a science at the local level in America.
Commercialization is another form.
We're not going to contract it out either. We're simply going to get out of this business altogether. The customers we used to serve can take care of the job themselves by contracting with the private provider they choose. This is how, for instance, cities across America have pulled out of the garbage business. Individuals shop among several private, competitive firms that specialize in picking up and properly disposing of garbage.