Uber-capitalism in the UK: The Carillion Bankrupcy

The extremist capitalist concept of privatizing State functions had been first implemented in Britain - surely in the water sector that I am familiar with. Public (their shares are sold in the stock exchange) companies like Thameswater seem to be working, but the failure of Carillion may provide an argument against privatization and for socialization.

We all know that pens in the post office do not write, so it is assumed that private enterprise can do the job better and cheaper. Yet the experience in water is mostly negative. In Argentina and Latin America, several water monopolies were privatized (with World Bank assistance) but they did not last much. The Israeli experience with the Taagidey Maim is a total failure: they evolved into another bureaucracy and not even one of them tried to sell shares or bonds in the stock exchange as was intended.

I have no experience in other areas like public works where Carillion was operating. Now, thousands of staff of the collapsed construction firm Carillion will have their wages stopped. The firm also manages British jails and schools and other public institutions. 30,000 small firms are owed money by Carillion.


Apparently, efficiency is not always improved by privatization. It is agreed that Statism/Socialism does not work. What works?