Contracting-out at local government level

Abstract

Contracting-out is a public sector reform tool, and it is used as a specific form of privatization. Because of its multi-dimensional character, it does not always lead to positive improvements, even in developed countries, and its impact in countries in Central and Eastern Europe may be limited. This issue is discussed in the theoretical part of this paper. Its analytical part investigates selected important dimensions of contracting-out for local public services in Slovakia and the Czech Republic, namely forms of delivery, decision-making processes concerning the selection of the form of delivery and of supplier, and costs comparisons. The final part provides a brief list of possible tools to improve the current negative situation.