The trend to renationalization
The New Zealand Labour government has confirmed that it will renationalise the country’s rail network. The Blair government in Britain did the same thing last year. In both cases, the decision reflected the failure of the private operator to deliver the expected outcomes rather than an ideological commitment to public ownership.
It is becoming increasingly clear that attempts to determine the optimal role of the public sector on the basis of an a priori ideology, such as old-style socialism or neoliberalism, are bound to result in bad policy decisions.