[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1998
Kiel Working Paper No. 891
The paper investigates the recent trends in privatization by local government organizations in Germany. It comes to the conclusion that the privatization policy has been two-directional: on the one hand, municipalities have reduced their economic activities, mainly by different forms of contracting out; on the other hand, they have expanded them into profitable fields. In many cases they have preferred a phantom privatization: government bodies have only been transferred into a private-law establishment. The paper examines the barriers to privatization and provides a strategy to overcome them.