From what ive read, consumers are definitely not the beneficiaries in such arrangements. Why do governments do this then? Why give up ownership and control of vital stuff (e.g. water, utilities, highways, etc.) to private – and often – foreign entities?
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2 basic principles:
1. It cost money to maintain
2. It drives concurrence
The first is self explanatory. Public service mean you pay taxes for it. And the government is not always the best with handling money. Privatizing means that whomever made the change can either drop the tax completely (Which usually looks very nice in his next campaign) or put the money to something else.
The second is that in theory, by making something private, you should end up with more than 1 company providing the service. As a result, they both want to take away customers from the other, pushing them to lower prices and/or improve the quality of the service. (The efficacy of such concept is debatable but is not the focus here)
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