John G. Heilman - The politics and economics of privatization: the case of wastewater treatment
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The politics and economics of privatization: the case of wastewater treatment
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Privatization is both an economic adaptation and a strategy to alter the political landscape and the historical relationships between the public and the private sectors. Both of these aspects of privatization need to be understood and appreciated because one cannot take place without the other. The roles and dynamics of the public and private sectors change in privatization. Thus, the need arises for linking mechanisms able to harness and mesh the chanenged roles and dynamics of the two sectors. The Politics and Economics of Privatization identifies, defines, and addresses these implications. It does so by discussing the attempts in the 1980s to meet clean water needs through the privatization of wastewater treatment facilities. What is privatization? How does it work? What is required? What does it cost? Is it acceptable? What issues does it raise? What are its implications for the implementation of national policy?
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Copyright 1992 by The University of Alabama Press Tuscaloosa, Alabama 35487-0380 All rights reserved Manufactured in the United States of America
The paper on which this book is printed meets the minimum requirements of American National Standard for information Science-Permanence of Paper for Printed Library Materials, ANSI A39.48-1984.
Library of Congress Cataloging-in-Publication Data Heilman, John G. The politics and economics of privatization : the case of wastewater treatment / John G. Heilman and Gerald W. Johnson p. cm. Includes bibliographical references (p. ) and index. ISBN 0-8173-0569-6 (alk. paper) 1. Sewage disposalUnited StatesCase studies. 2. PrivatizationUnited StatesCase studies. I. Johnson, Gerald W. II. Title. HD4477.H45 1992 338.973dc2091-43291 CIP
British Library Cataloguing-in-Publication Data available
Page v
For Ursula Jung Heilman and Nadine Maynard Johnson
Page vii
Privatization... is much more than a set of specific changes in who performs an activity and how. it is part of a fundamental political and economic rethinking that today is reassessing the roles of government and the private sector in the modern welfare statea rethinking that is having an influence on all segments of American opinion. Report of the President's Commission on Privatization
Page ix
Contents
Figures
xi
Tables
xii
Acknowledgments
xiii
Introduction
1
Chapter 1 Public-Private Partnerships
9
Chapter 2 National Water Policy and Wastewater Treatment Privatization
34
Chapter 3 City of Auburn and the Clean Water Act: The Struggle for Compliance
62
Chapter 4 System and Process
81
Chapter 5 Law and Policy
100
Chapter 6 Economics
113
Chapter 7 Contracts: Costs and Risk
132
Chapter 8 Mount Vernon: Post-1986 Tax Reform Privatization
145
Chapter 9 Politics: Public and Private
154
Chapter 10 The Western Carolina Regional Sewer Authority: Deprivatization
181
Chapter 11 Privatization: Revolution, Reform, or Regression?
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