The Three Faces of Privatisation

Abstract

Starting from the premise that social policies represent solutions to socially constructed problems (Edelman 1987), this article presents an adaptation of Lukes's (1974) theory of power to consider three interpretations of privatisation as illustrated in Britain and the United States during the 1980s and early 1990s. Privatisation is most frequently presented in political and academic discourse as essentially a matter of contracting out public services or functions and selling off state assets. This `first face' of privatisation coincides with a naive pluralist approach to power and a liberal capitalist vision of society. While this view has some justification within a very narrow frame of reference, a `second face' of privatisation is necessary to bring attention to crucially related aspects of exercises of power, such as corruption, homelessness and social inequality, which may be products of contracting out and sell-offs. Additionally, a second face view of privatisation highlights the privatising effects of certain policies which are ignored, obscured or hidden by the first face view. An analysis of public sector expenditure cuts as a process of privatisation is crucial in this regard. Finally, a `third face' of privatisation, as a hegemonic project, is raised. Here, privatisation is viewed as having a cultural and political mission, aiming to alter consciousness and effect changes in power relationships. The hegemonic capacity of privatisation is considered through an examination of ideological constructions such as the binary divide between private and public spheres and a sociobiological rationale for policy.