Although, accountability in public administration is different from accountability in the private sector, yet, an increasing...

Although, accountability in public administration is different from accountability in the private sector, yet, an increasing number of public services are being contracted to private sector organizations. What are the advantages and disadvantages of awarding public sector services to private sector organizations, instead of allowing public agencies to perform them?

Expert Solution

Advantages of awarding public sector services to private sector organizations:

Increase in quality of goods and services
Adoption of latest technology
Flow of huge capital
Increase in innovation and creativity

Disadvantage of awarding public sector services to private sector organizations:

Prices may rise and goods and services may become unaffordable for consumers.
It may lead to the creation of monopoly in the economy.
Government may loose control over business organizations.
Decrease in government regulations.

Rahul Sunny answered 3 years ago

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