Marketization undermining the welfare system | LARS P. SYLL

Sweden has during the last couple of decades tried to marketize the public welfare sector. The prime mover behind the marketization has (allegedly) been the urge for cost-minimization, freedom of c…

Source: Marketization undermining the welfare system | LARS P. SYLL


Perhaps not as far advanced as the British “marketisation” of welfare (and healthcare), this review of the effects in Sweden suggests that we cannot expect “privatisation” to work for a number of reasons:

  • Local authorities struggle to come up with appropriate contracts and effective monitoring of them
  • It is difficult to maintain standards (and equality across the country) when the system gets fragmented by breaking everything down into small “contracts”
  • It is difficult for providers to not only provide the best possible standards of care and the highest profits to shareholders – or put another way the system builds in a conflict between doing your best and doing it for the best price