Local government reform: Privatisation and its alternatives

Privatisation is only one of several alternatives for local government reform. Problems with lack of cost savings and the challenges of contract management have led local government reformers to explore other alternatives including municipal corporations, relational contracting and dynamic market management. Empirical analysis shows concerns with fiscal stress, efficiency, and managing political and citizen interests drive the reform process more than ideology. We argue that a more comprehensive framework is needed that gives attention to a wider array of alternatives for institutional reform.