Is privatisation more efficient?
We are told that privatisation will lead to more efficient industries and public services and will thus save money. In fact this is seldom the case. The need to generate a profit pushes up costs and governments can invest more cheaply as they can borrow more cheaply. Of course we are expected to believe that privatisation is good for the economy as a whole, and thus for all of us. The truth is that it benefits the rich. It is estimated that the private sector in Britain will earn £30 billion a year through the PFI. There are literally thousands of examples of the inefficiencies and the idiocies of the market. In the Dominican Republic electricity prices increased by 51% after privatisation. Blackouts are common. The government however is tied into expensive contracts and by 2000 owed the power companies $135 million. The privatisation of British Rail has been an unparalleled disaster. The number of train cancellations trebled between 1996 and 1999. Maintaining the rail system has been
