Home MCQs Governance and Public Policy Question #10512
Back to Questions
Governance and Public Policy QUESTION #10512
Question 1
The increased use of private firms for public service delivery is driven in part by:
  • An ideological conviction that services should be provided by non-state actors wherever possible✔️
  • Increased government financial capacity to pay private organizations
  • A desire to increase direct government involvement in service delivery
  • Efforts to strengthen the governmental role in policy development
Correct Answer Explanation
One key driver of contracting out and privatization is the ideological belief — rooted in neoliberalism and Public Choice Theory — that market competition and private management inherently produce more efficient, cost-effective services than government bureaucracies. This view gained dominance under Thatcher, Reagan, and subsequent NPM reforms globally, reshaping how governments deliver services.