Privatization and urban governance: The continuing challenges of efficiency, voice and integration

Privatization has been promoted as an urban reform for more than 40 years. Although cities around the world have pursued privatization, it has not delivered the promised efficiency, voice and service integration gains. City managers recognize the challenges of market management for urban service delivery and the critical difference between a citizen and a consumer. This has led to new hybrid forms of service delivery which jointly engage public, private and citizen groups. However, concerns over efficiency, voice and equity remain.

► Privatization has evolved to include a wide array of alternative service delivery.
► Lack of efficiency gains from private contracting has led to reversals.
► Inter-governmental contracting and co-production with citizens offer more promise.
► Market approaches may fragment the city and undermine citizen voice, universal access and equity goals.
► Governments must manage markets to ensure social objectives are met.