Written by Dr Madsen Pirie
The term "public goods" is a misnomer. Perhaps the government has given on behalf of the public, but these assets are not owned by the public in any way. All attributes of the property, such as control, the right to decide how they will be used and under what conditions, is determined by the bureaucracy that is responsible. Far from being publicly owned, are actually owned by the persons in charge of administering them. In fact, the public has much greater influence through their purchasing decisions on private sector companies that can have on state enterprises. In such case, the influence is diffused and diluted through the political process.
As the public can not choose whether or not to buy goods or utilities, or to choose the quality that is appropriate, have no power over state enterprises. In the absence of that power, are the managers and workers who decide how to do things according to their own interests and not those of the public. The phenomenon, called "producer capture" by economists, results in products and services that generate low customer satisfaction and low productivity in terms of resources that are public companies.
When parts of the public sector are privatized, they become part of the economy where people have some control and influence. It is the public sector is actually in a few hands, and the private sector that is subject to the preference of the majority. When an industry is privatized state by a wide emission of shares, an important part of the public can access a genuine property, rather than the myth that public ownership has always been.
original input in English.
