Regulatory Choices in the Privatization of Infrastructure
PRIVATE SECURITY AND PUBLIC ORDER: GOVERNANCE AND LIMITS, S. Chesterman, A. Fischer, eds., Oxford University Press, 2009
26 Pages Posted: 3 Jun 2010 Last revised: 4 Jun 2010
This chapter considers the question of how a decision to privatize is made and examines how such a decision impacts the choice of regulatory framework. By developing a comparative analysis of the privatization processes in infrastructure sectors as well as the military and security sector, it discusses the circumstances under which a regulatory framework is established, designed, and enforced. It argues that a government contracting with Private Military and Security Companies (PMSC) should not only justify why privatization is necessary. Any such claim should be assessed by an independent body (similar to the cost-benefit analysis of regulation performed by the Office of Management and Budget in the United States). The chapter calls for transparency in privatization of private military and security services, arguing that citizens should have access to information whenever that does not raise security concerns.
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