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What are the limits, if any, to the privatisation of the welfare state - Essay Example

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What are the limits, if any, to the privatisation of the welfare state? The central issue considered in this essay concentrates on the privatisation of the welfare state. The essay will therefore examine the definition of privatisation as perceived by scholars…
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What are the limits, if any, to the privatisation of the welfare state
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What are the limits, if any, to the privatisation of the welfare state

Download file to see previous pages... At this juncture, definitions and features of the welfare state will be discussed. As privatisation is considered an important global financial phenomenon, its implementation in a welfare state is crucial because of its scope, its capability to privatise public entities and in an extensive manner. An analysis of the discussion at this point will show the scope of privatisation in the welfare state and the factors that limit its scope. This essay will thus explore whether or not the welfare state can be completely privatised; and if not, justify reasons behind its failure to do so. The conclusion to this essay will be drawn accordingly, from the arguments as specified above. In considering the issue of privatisation limits on the welfare state, relevant literature on the subject matter has been considered. Reliable internet sites have therefore been explored to obtain the relevant literature for this essay. A considerable attention was given towards the reliability and the authenticity of the sources considered as eligible. Adequate background research was also conducted when structuring this essay to gain an in-depth knowledge regarding the various dimensions and noteworthy features of the debated topic, which further helped in gathering requisite materials to substantiate the arguments in the discussion henceforth. The Concept and Rationale of Privatisation Privatisation in itself is a multifaceted phenomenon (Andersen, 2007; Jessop, 2002). As the concept of poverty and governance are contested and therefore, poses difficulties in their definitions, privatisation lends itself in that category of a contested phenomenon. Starr (1988) refers to privatisation as a “fuzzy concept”, perceiving privatisation as an idea and a policy movement, but generally agreeing that the concept involves the transfer of public or state ownership of assets to the private domain. Many other scholars, including Mohammed & et. al. (2013), Spronk & Terhorst (2012) and Beland (2007) agree to this definition of Starr (1988), although, certain of them go in more detail as to what the concept entails. In line with Starr (1988), Doogan (2012) describes privatisation as the “relocation of the services from mother ship of the public sector to the alien landscape of the company…) while on the other hand, the concept is regarded as “the comprehensive strategy of permanently restructuring the welfare state and public services in the interest of capitalism” (Whitfield, 1983) . Drawing from these studies and the corresponding arguments of the scholars it can be well interpreted that the general and basic understanding of the concept of privatisation is a transfer of ownership from public to private domain. There is however methods of this transfer, which needs to be explored. Transfer of ownership can be a complete transfer of the whole or partial. It can take the form of outsourcing or contracting services to the private sector, normally regarded as partial privatisation. Nevertheless, the concept should not be confused with marketisation, which is regarded as a multidirectional externalisation and internalisation of both services and administration of the public sector (Doogan, 2012). In marketisation, as opposed to privatisation, the state commercialises its establishments and co-operations to compete in the market. By so doing, the state continues to finance its welfare programmes. The rationale behind the concept of pr ...Download file to see next pagesRead More
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