טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentTamir Ben Shahar
SubjectPrivatization Potential of Muncipal Services
DepartmentDepartment of Architecture and Town Planning
Supervisor Professor Czamanski Daniel


Abstract

This research examines the different aspects of the privatization of Israeli local authority services, and the potential of the integration of private enterprise within different local authority activities. In addition, the policy and performance of the privatization process of local authority welfare services is observed, focusing on services for the elderly.


Research findings:


Privatization at the in Local Authority level:

     A thorough examination of privatization at the local authority level shows that privatization exists only at the level of tenders and contract work. Therefore there is no full privatization (pure privatization) at the local authority level.


Privatization in the welfare field:

    A fear of privatization is mainly connected to the arrangements by which the government relinquishes both the provision and the funding of services. However, versions of privatization which transfer the supply of services, but leave the government responsible for funding, do not cause the same degree of damage.


    The research analysis presented herein clearly illustrates the existence of the non governmental supply of public goods. Non-profit institutions such as charity organizations, fellowships, municipal organizations and private bodies work in the Israeli local authority sector. And yet, there are real limitations to governmental arrangements for funding public goods in the welfare sector.


    Governmental relinquishment of public services is potentially a disastrous action with respect to the satisfaction of pressing social needs. Both the total quantity and affectivity of services are threatened. .


    In summary, privatization will fulfill its objectives only after alternative evaluation. It should be neither excluded nor underestimated as a policy-tool; however it should not be used indiscriminately. The local government in Israel must adopt privatization as an additional policy-tool that will satisfy the current requirements for local government activity.