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The COMPETITION BETWEEN the AUTHORITIES as is important, as well as a competition between firms
The competition of the authorities among themselves and with private enterprises forces
Authorities it is better to serve interests of people
The competition disciplines. If the private concern badly serves clients,
She loses to the competitors offering the best conditions. The competition gives
To consumers protection against the high prices, the bad goods and services, rough
Behaviour of the personnel. Concerning a private sector with it agree almost
All. Importance of a competition in public sector, unfortunately, not so
It is widely recognised.
System of the stimulus influencing official bodies and
The enterprises, not very much promotes their effective activity. In
Difference from private owners, directors and managing directors of the enterprises
Public sector seldom win from decrease in costs and improvement
Results of the activity. On the contrary, the enterprise which cannot
To spend allocated to it for a year money, hardly will receive more on
The next year. Therefore the enterprises, not managed to dispose of the full
The sum allocated with it for a year of means, usually tries in any way
To spend them in the end of the year. Employees name this situation "the fiscal
The rate of return serves in a private sector as evident enough indicator
Efficiency. In public sector where such indicators are not present,
Managing directors manage to hide successfully an economic inefficiency
State-owned firms. In a private sector a result of inefficient activity
There is a bankruptcy. In public sector of the similar mechanism not
Exists. On the contrary, bad results and inability to reach
Objects in view often are used as argument for increase
Expenses. For example, managers of comprehensive schools use decrease
Indicators of progress of pupils as the necessity proof
Additional financing; in the similar image police department
Uses the data about criminality growth.
Therefore vital, that the state enterprises
Competed to private concerns. If the state carries out
Order maintenance in streets, dust cleaning, training at schools etc.,
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