Social security reform in the United States continues to be a pressing and contentious issue, with advocates touting some form of a centralized or a privatized system of personal accounts. In general, centralized systems offer low administrative costs, but are potentially subject to political mismanagement and appropriation. Privatized account systems, on the other hand, offer higher yields with more flexibility, but may prove too expensive and logistically daunting to implement. Uniting learned and outspoken proponents on both sides of the debate, this volume provides the first comprehensive analysis of the issues involved in administering a system of essentially private social security accounts. The contributors together come to startlingly similar conclusions, generally agreeing that a centralized system of accounts could deliver the benefits of privatization in a feasible and cost-efficient way by accessing administrative mechanisms already in existence. This is perhaps the most far-reaching synthesis yet envisioned of functional and implementable social security reform.

Social security is the largest and perhaps the most popular program run by the federal government. Given the projected increase in both individual life expectancy and sheer number of retirees, however, the current system faces an eventual overload. Alternative proposals have emerged, ranging from reductions in future benefits to a rise in taxrevenue to various forms of investment-based personal retirement accounts.

As this volume suggests, the distributional consequences of these proposals are substantially different and may disproportionately affect those groups who depend on social security to avoid poverty in old age. Together, these studies persuasively show that appropriately designed investment-based social security reforms can effectively reduce the long-term burden of an aging society on future taxpayers, increase the expected future income of retirees, and mitigate poverty rates among the elderly.

In the early 1980s the tenant leaders of the New Orleans St. Thomas public housing development and their activist allies were militant, uncompromising defenders of the city’s public housing communities. Yet ten years later these same leaders became actively involved in a planning effort to privatize and downsize their community—an effort that would drastically reduce the number of affordable apartments. What happened? John Arena—a longtime community and labor activist in New Orleans—explores this drastic change in Driven from New Orleans, exposing the social disaster visited on the city’s black urban poor long before the natural disaster of Katrina magnified their plight.

Arena argues that the key to understanding New Orleans’s public housing transformation from public to private is the co-optation of grassroots activists into a government and foundation-funded nonprofit complex. He shows how the nonprofit model created new political allegiances and financial benefits for activists, moving them into a strategy of insider negotiations that put the profit-making agenda of real estate interests above the material needs of black public housing residents. In their turn, white developers and the city’s black political elite embraced this newfound political “realism” because it legitimized the regressive policies of removing poor people and massively downsizing public housing, all in the guise of creating a new racially integrated, “mixed-income” community.

In tracing how this shift occurred, Driven from New Orleans reveals the true nature, and the true cost, of reforms promoted by an alliance of a neoliberal government, nonprofits, community activists, and powerful real estate interests.

Over the last twenty-five years, there has been an acceleration in the move from government regulation towards privatization. Governance, Regulation, and Privatization in the Asia-Pacific Region is the first thoroughgoing account of the relative success of the different approaches to privatization as undertaken in Korea, China, Australia, and Japan.

In most contexts, privatization is expected to yield greater efficiency and cost effectiveness while avoiding the corruption and bloated budgets of government regulation or monopoly control. But broad-scale privatization, if ill designed, has also yielded its share of difficulties in East Asia. Privatization sometimes has created a vacuum in corporate governance for some of the region's most important industries and in some cases merely reinstated the monopoly-like configurations. The papers presented in this book discuss the experiences of privatization in several industries, including railroad and telecom, corporate governance problems, accounting issues, and challenges for the future in East Asian countries.

The first section is theoretical in nature and proposes boundaries among government protection, market freedom, and shareholder expectations. The second part is constituted by country case studies, beginning with an analysis of both the Korean financial crisis that followed its 1997 law to privatize large, public sector corporations and the new ways Korean corporations finance themselves. Following is an evaluation of China's approach to privatization, with an in-depth look at the financial transitions of companies slated for initial public offering.

Providing provocative examples of the methods of privatization in the Asia-Pacific region specifically, these papers will be of huge import to any economist or policymaker interested in transposing those successes for their own region.

As governments in industrialized nations around the world face fiscal crises, they are increasingly turning over the functions of the welfare state to the private sector. Health care systems are particularly tempting targets for privatization. The costs of health care have risen faster than many other services. Health care systems fail to reward efficiency, and liberal welfare policies have enlarged the number of people who benefit from public health care services, and have done so in ways that often seem inequitable. The particular forms that privatized health care take are closely intertwined with local and political and economic circumstances, but the popularity of the idea in all kinds of governments, in all parts of the world, is very striking. This book looks at the theory and practice of privatization of health services internationally. The contributors argue that the restructuring of health care systems affects local communities in markedly uneven ways. Ultimately, they conclude, conflicts arising from economic and geographic inequities implicit in privatization will limit the degree to which any government can dismantle its health care services.

Latin America higher education has undergone an astonishing transformation in recent years, highlighted by the private sector's growth from 3 to 34 percent of the region's total enrollment. In this provocative work Daniel Levy examines the sources, characteristics, and consequences of the development and considers the privatization of higher education within the broader context of state-society relationships.

Levy shows how specific national circumstances cause variations and identifies three basic private-public patterns: one in which the private and public sectors are relatively similar and those in which one sector or the other is dominant. These patterns are analyzed in depth in case studies of Chile, Mexico, and Brazil. For each sector, Levy investigates origins and growth, and then who pays, who rules, and whose interests are served.

In addition to providing a wealth of information, Levy offers incisive analyses of the nature of public and private institutions. Finally, he explores the implications of his findings for concepts such as autonomy, corporatism, and privatization. His multifaceted study is a major contribution to the literature on Latin American studies, comparative politics, and higher education.

Debates continue to rage over the merits or flaws of public land and whether or not it should be privatized—or at least, radically reconfigured in some way. In Defense of Public Lands offers a comprehensive refutation of the market-oriented arguments. Steven Davis passionately advocates that public land ought to remain firmly in the public’s hands. He reviews empirical data and theoretical arguments from biological, economic, and political perspectives in order to build a case for why our public lands are an invaluable and irreplaceable asset for the American people. 

In Defense of Public Lands briefly lays out the history and characteristics of public lands at the local, state, and federal levels while examining the numerous policy prescriptions for their privatization or, in the case of federal lands, transfer. He considers the dimensions of environmental health; markets and valuation of public land, the tensions between collective values and individual preferences, the nature and performance of bureaucratic management, and the legitimacy of interest groups and community decision-making. Offering a fair, good faith overview of the privatizers’ best arguments before refuting them, this timely book contemplates both the immediate and long-term future of our public lands.

In Invoking the Invisible Hand Robert Asen scrutinizes contemporary debates over proposals to privatize Social Security. Asen argues that a rights-based rhetoric employed by Social Security's original supporters enabled advocates of privatization to align their proposals with the widely held belief that Social Security functions simply as a return on a worker's contributions and that it is not, in fact, a social insurance program.
    By analyzing major debates over a preeminent American institution, Asen reveals the ways in which language is deployed to identify problems for public policy, craft policy solutions, and promote policies to the populace. He shows how debate participants seek to create favorable contexts for their preferred policies and how they connect these policies to idealized images of the nation.

The one indispensable resource, water is increasingly controlled and even owned by private capital. By 2012, water was a trillion-dollar industry—and as population growth, industrial production, and ecological change make scarcity ever-more common, water may well become the source of military and political conflict in the years to come.
 
This book looks at how we got here and what we can and should do next. Laying out the complex arguments surrounding water, its ownership and access to it, Mike Gonzalez and Marianella Yanes make the technical and scientific aspects of the discussion clear and accessible—and thereby enable themselves to make the political questions more urgent. Pushing back against the market fundamentalists, the authors argue that it is both possible and necessary that considerations of equity and social justice prevail in the debates about water. Powerful and polemical, The Last Drop will be a vital resource for water activists worldwide.

Markets of Sorrow, Labors of Faith is an ethnographic account of long-term recovery in post-Katrina New Orleans. It is also a sobering exploration of the privatization of vital social services under market-driven governance. In the wake of Hurricane Katrina, public agencies subcontracted disaster relief to private companies that turned the humanitarian work of recovery into lucrative business. These enterprises profited from the very suffering that they failed to ameliorate, producing a second-order disaster that exacerbated inequalities based on race and class and leaving residents to rebuild almost entirely on their own.

Filled with the often desperate voices of residents who returned to New Orleans, Markets of Sorrow, Labors of Faith describes the human toll of disaster capitalism and the affect economy it has produced. While for-profit companies delayed delivery of federal resources to returning residents, faith-based and nonprofit groups stepped in to rebuild, compelled by the moral pull of charity and the emotional rewards of volunteer labor. Adams traces the success of charity efforts, even while noting an irony of neoliberalism, which encourages the very same for-profit companies to exploit these charities as another market opportunity. In so doing, the companies profit not once but twice on disaster.

The rancorous debate over the future of Social Security reached a fever pitch in 2005 when President Bush unsuccessfully proposed a plan for private retirement accounts. Although efforts to reform Social Security seem to have reached an impasse, the long-term problem—the projected Social Security deficit—remains. In Pension Puzzles, sociologists Melissa Hardy and Lawrence Hazelrigg explain for a general audience the fiscal challenges facing Social Security and explore the larger political context of the Social Security debate. Pension Puzzles cuts through the sloganeering of politicians in both parties, presenting Social Security's technical problems evenhandedly and showing how the Social Security debate is one piece of a larger political struggle. Hardy and Hazelrigg strip away the ideological baggage to explicate the basic terms and concepts needed to understand the predicament of Social Security. They compare the cases for privatizing Social Security and for preserving the program in its current form with adjustments to taxes and benefits, and they examine the different economic projections assumed by proponents of each approach. In pursuit of its privatization agenda, Hardy and Hazelrigg argue, the Bush administration has misled the public on an issue that was already widely misunderstood. The authors show how privatization proponents have relied on dubious assumptions about future rates of return to stock market investments and about the average citizen's ability to make informed investment decisions. In addition, the administration has painted the real but manageable shortfalls in Social Security revenue as a fiscal crisis. Projections of Social Security revenues and benefits by the Social Security Administration have treated revenues as fixed, when in fact they are determined by choices made by Congress. Ultimately, as Hardy and Hazelrigg point out, the clash over Social Security is about more than technical fiscal issues: it is part of the larger culture wars and the ideological struggle over what kind of social responsibilities and rights American citizens should have. This rancorous partisan wrangling, the alarmist talk about a "crisis" in Social Security, and the outright deception employed in this debate have all undermined the trust between citizens and government that is needed to restore the solvency of Social Security for future generations of retirees. Drawing together economic analyses, public opinion data, and historical narratives, Pension Puzzles is a lucid and engaging guide to the major proposals for Social Security reform. It is also an insightful exploration of what that debate reveals about American political culture in the twenty-first century. A Volume in the American Sociological Association's Rose Series in Sociology

Politics of Solidarity explores the transformation of public services in post-apartheid South Africa and the effects of privatization in three cities: Johannesburg, Ekurhuleni, and Cape Town. Drawing on extensive qualitative fieldwork, Carmen Ludwig sheds light on local conflicts on the provision of public services and on trade union strategies that cope with rising public-private partnerships. In the face of persistent social inequality and the rise of precarious work, Ludwig asks how trade unions can create solidarity in fragmented workforces and bridge the gap between permanent workers and those on the margins in the workplace and society. Politics of Solidarity offers insights into the changing world of municipal work, the struggles of precarious workers and more broadly, on the labor dynamics of contemporary South Africa.
 

The concept of hope is central to the work of the German philosopher Ernst Bloch (1885–1977), especially in his magnum opus, The Principle of Hope (1959). The "speculative materialism" that he first developed in the 1930s asserts a commitment to humanity's potential that continued through his later work. In The Privatization of Hope, leading thinkers in utopian studies explore the insights that Bloch's ideas provide in understanding the present. Mired in the excesses and disaffections of contemporary capitalist society, hope in the Blochian sense has become atomized, desocialized, and privatized. From myriad perspectives, the contributors clearly delineate the renewed value of Bloch's theories in this age of hopelessness. Bringing Bloch's "ontology of Not Yet Being" into conversation with twenty-first-century concerns, this collection is intended to help revive and revitalize philosophy's commitment to the generative force of hope.

Contributors. Roland Boer, Frances Daly, Henk de Berg, Vincent Geoghegan, Wayne Hudson, Ruth Levitas, David Miller, Catherine Moir, Caitríona Ní Dhúill, Welf Schröter, Johan Siebers, Peter Thompson, Francesca Vidal, Rainer Ernst Zimmermann, Slavoj Žižek

With evidence drawn from Argentina, Chile, Mexico, Great Britain, and Hungary, Re-forming the State examines the processes leading to, and the political effects of, market reform experiments and focuses specifically on the patterns of collective action and coalition building that drive privatization. The author's argument calls into question established approaches in the discipline of economics and in the fields of comparative and international political economy.
The experience of privatization shows that the public and the private are neither contradictory nor mutually exclusive spheres, and that power relations between them are not necessarily zero-sum. To stress the point, the author borrows from the literature on state formation, which has extensively examined the historical processes of key private groups. The evidence presented shows why and how, by restructuring coalitional and institutional arenas, the state uses marketization to generate political order and to distribute political power. Thus, the author specifies the conditions under which political change is conceived in terms of and channeled through economic policy; in other words, how the state is "re-formed" through privatization. Re-forming the State thus highlights how privatization is simultaneously a movement from public to private, but also a movement from non-state to state, as the reduction of state assets leads to institutional changes that increase state capacities for defining and enforcing property rights, extracting revenue, and centralizing administrative and political resources.
Hector E. Schamis is Assistant Professor of Government, Cornell University.

Americans spend hours every day sitting in traffic. And the roads they idle on are often rough and potholed, their exits, tunnels, guardrails, and bridges in terrible disrepair. According to transportation expert Robert Poole, this congestion and deterioration are outcomes of the way America provides its highways. Our twentieth-century model overly politicizes highway investment decisions, short-changing maintenance and often investing in projects whose costs exceed their benefits.

In Rethinking America’s Highways, Poole examines how our current model of state-owned highways came about and why it is failing to satisfy its customers. He argues for a new model that treats highways themselves as public utilities—like electricity, telephones, and water supply. If highways were provided commercially, Poole argues, people would pay for highways based on how much they used, and the companies would issue revenue bonds to invest in facilities people were willing to pay for. Arguing for highway investments to be motivated by economic rather than political factors, this book makes a carefully-reasoned and well-documented case for a new approach to highways that is sure to inform future decisions and policies for U.S. infrastructure.

Our current social security system operates on a pay-as-you-go basis; benefits are paid almost entirely out of current revenues. As the ratio of retirees to taxpayers increases, concern about the high costs of providing benefits in a pay-as-you-go system has led economists to explore other options. One involves "prefunding," in which a person's withholdings are invested in financial instruments, such as stocks and bonds, the eventual returns from which would fund his or her retirement. The risks such a system would introduce—such as the volatility in the market prices of investment assets—are the focus of this offering from the NBER. Exploring the issues involved in measuring risk and developing models to reflect the risks of various investment-based systems, economists evaluate the magnitude of the risks that both retirees and taxpayers would assume. The insights that emerge show that the risk is actually moderate relative to the improved return, as well as being balanced by the ability of an investment-based system to adapt to differences in individual preferences and conditions.

Social Security in the United States and in Europe is at a critical juncture. Through the essays assembled in Social Security Pension Reform in Europe, Martin Feldstein and Horst Siebert, along with a number of distinguished contributors, discuss the challenges facing Social Security reform in the aging societies of Europe. A remarkable range of European nations—Germany, France, Finland, the Netherlands, Poland, Romania, Italy, Sweden, the United Kingdom, and Hungary—have implemented or are about to implement mixed Social Security systems that combine a traditional defined benefit of the pay-as-you-go system with an individual retirement account defined contribution of a capital-funded system.

The essays here highlight the problems that the European pension reform process faces and how it differs from that of the United States. This timely volume will significantly enrich the debate on pension reform worldwide.

When communism fell in 1989, the question for most Eastern European countries was not whether to go to a market economy, but how to get there. Several years later, the difficult process of privatization and restructuring continues to concern the countries of the region. The Transition in Eastern Europe, Volumes 1 and 2 is an analysis of the experiences of various countries making the transition to market economies and examines the most important challenges still in store.

Volume 1, Country Studies, gives an in-depth, country-by-country analysis of various reform experiences, including historical backgrounds and discussions of policies and results to date. The countries analyzed are Poland, Czechoslovakia, Hungary, eastern Germany, Slovenia, and Russia. Written by leading economists, some of whom helped shape local and national reforms, this volume identifies common progress, common difficulties, and tentative solutions to the problems of economic transition.

Volume 2, Restructuring, focuses on specific issues of transition, including how to design labor market institutions, privatization, new fiscal structures, and bankruptcy laws; how to reorganize foreign trade; and how to promote foreign direct investment. The articles, written by experts in the field, will be of direct help to those involved in the transition process.

These volumes provide a standard reference on economic transition in the region for policymakers in Eastern Europe and in western countries, for international agencies concerned with the transition process, and for anyone interested in learning about the dramatic changes that have recently occurred in Eastern Europe.

When communism fell in 1989, the question for most Eastern European countries was not whether to go to a market economy, but how to get there. Several years later, the difficult process of privatization and restructuring continues to concern the countries of the region. The Transition in Eastern Europe, Volumes 1 and 2 is an analysis of the experiences of various countries making the transition to market economies and examines the most important challenges still in store.

Volume 1, Country Studies, gives an in-depth, country-by-country analysis of various reform experiences, including historical backgrounds and discussions of policies and results to date. The countries analyzed are Poland, Czechoslovakia, Hungary, eastern Germany, Slovenia, and Russia. Written by leading economists, some of whom helped shape local and national reforms, this volume identifies common progress, common difficulties, and tentative solutions to the problems of economic transition.

Volume 2, Restructuring, focuses on specific issues of transition, including how to design labor market institutions, privatization, new fiscal structures, and bankruptcy laws; how to reorganize foreign trade; and how to promote foreign direct investment. The articles, written by experts in the field, will be of direct help to those involved in the transition process.

These volumes provide a standard reference on economic transition in the region for policymakers in Eastern Europe and in western countries, for international agencies concerned with the transition process, and for anyone interested in learning about the dramatic changes that have recently occurred in Eastern Europe.