Privatizing Welfare Services

Book excerpt: Focusing on health care, education, and elderly care, Privatizing Welfare Services draws on extensive research on the consequences of introducing market-based mechanisms to deliver welfare services. Empirical evidence over the last few decades is summarized and condensed to policy lessons. How to balance equity and efficiency is a central theme. The book also addresses the challenges of financing the Swedish model of welfare services as well as the importance of management practices and public opinion. The privatization of service production has occurred despite major political controversy between two competing visions for the welfare state. Successful experiments have spread organically to neighbouring municipalities. What was done well in this process and what were the mistakes? The book addresses the fundamental economic challenges, the trends of the future, and the implications for institutional design.