What are the issues of privatization and federalization?
Transferring authority to states and localities also encourages a comprehensive and insists that governmental decisions are and should be made accordingly. With such strategies Washington officials are in effect saying: ?Let local officials decide what is proper policy in their locality. Let us not interfere.? Some people contend, and they are partly correct, efficiency and a smaller federal bureaucracy should be prime concerns. But dividing up policy making into fragmented, functional units are also means of getting Congress and federal bureaucrats to give up their power over federal funds. Thus, local policy making is still another way for Washington officials to make people happy. Yet it is often at the expense of national objectives, comprehensive planning and swift action. Historically, state responsibility for social programs, for example education and welfare, has often let to significant interstate disparities in funding and in the provision of services. Even when the national government is unified in its views, localities are often able to delay or modify federal policies by local administrative manipulations.
The diversity and complications created by federalism make it difficult for the national government to implement effectively public policy through state and local authorities. The states are not organized the same way; for example, they are divided into sub-units differently. The presence of effective decision-makers and policy entrepreneurs varies greatly across the states as do a states? financial capacity, responsibility, and commitment to particular programs. Privatization can duly be characterized as the most and thoughtful way of managing or counter managing of government or private industries.
It relates a very profound background in the promotion of private industries, in which they may have great potential for assuming the control of private sectors. The objective of privatization is to obtain public services at lower cost and sometimes to shrink public bureaucracy and to encourage additional efficiencies.