Outsourcing government regulatory responsibilities

Contracting out implementation of regulations
Privatization of public enforcement agencies
Enforcing local government laws by franchise

Description

In order to enable more effective implementation and "policing" of government regulations, private bodies undertake the enforcement of public laws and regulations.

Implementation

In the local government sector in the UK, private companies have been given responsibility for "wheel clamping" cars that are illegally parked. The fines are recovered by the company to cover their costs, and reviewed periodically in consultation with the government.

Counter-claim

Free market advocates in the USA. have tried to privatize regulation by handing over responsibility for enforcing social, environmental and economic standards to the very companies most guilty of violating them. The result has been the enrichment of a few insiders, higher prices for consumers, and the impoverishment of a large group of employees and investors. That is hardly a system the rest of the world is going to want to adopt.