Privatization In the City: Successes, Failures, Lessons Review

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Privatization In the City: Successes, Failures, Lessons ReviewE.S. Savas makes it clear from the beginning that he's a strong supporter of privatization. Throughout his 40 year career he has petitioned city, state, and local governments to shift more towards the private sector. For Savas, if it is unclear a government service is more efficient than the private sector it should be privatized.
Savas' analysis of privatization is mostly correct. Strong evidence exists that privatization cuts municipal costs and increases the quality of service to consumers. Privatization tends to be more successful with "hard" services, like trash collection, that can be easily contracted and monitored. "Soft" services, like mental health, are difficult to privatize. Almost all cities are happy with the overall results of privatization.
The problem is that Savas doesn't attempt to be objective. The entire book is one long diatribe for privatization. The words "Failures" and "Lessons" are rather deceptive. Reading the title it seems that Savas is making an analysis of privatization and trying to pinpoint where privatization doesn't work. That's not Savas' intent. Savas never claims privatization failed because of market failures. Every time privatization has failed, according to Savas, it's because of short sighted bureaucrats and labor unions. Therefore his "lessons" are how to circumvent public resistant to privatization (p.190 is especially alarming.)
Somewhat strangely Rudolph Giuliani is continual promoted throughout the book. Savas' praise borders on ridiculous at certain points. At times it is difficult for the reader to understand if this is an academic book looking at municipal privatization or a campaign book for Rudolph Giuliani.
Any potential reader should beware that Savas makes no attempt to be impartial. Other books cover the theory and empirical evidence of privatization far superior to Savas' polemic. For anyone looking for an explanation of municipal privatization I suggest Jeffrey Greene's "Cities and Privatization."
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