The government has failed to support and promote public goods and this situation has led to the privatization of public goods such as schools. Private schools are mainly funded and maintained nongovernmental organizations, multinational corporations, the intergovernmental organization as well as the community-based organization (Kushner C., MacLean M., & Paller W., 2015). Privatization of public school is not a new thing. Two years back I witnessed a public school that was private by a certain nongovernmental organization. The government did not want to disclose this privatization of the school. It was reported that the government failed to provide adequate finance to the school to run its operations. The school was running under huge debts that force the government to hand over the school to the nongovernmental organization to run and maintain the school. Additionally, it is believed that mismanagement of funds through corruption in the government significantly led to the deterioration of the school.
Based on the normative theory, privatization of this school was due to the value that the school lacked and which it will benefit from the privatization (Lesson 1, Slide 9). The government failed to provide adequate funds and therefore, this privatization is valuable to this school since it will benefit by receiving proper management and adequate funds. Privatization of this school is also valuable since it helps to avoid mismanagement of funds and promote proper management of funds. This is important in ensuring the public good gets long-run equilibrium. However, in a positive theory perspective, the government failed to maintain the school due to ineffective policies which ensures that public schools are provided with enough resources and the proper management to ensure good quality education and the wellbeing of the students (Lesson 1, Slide 9). Externalities such as overpopulation in the areas may have led to the inadequate allocation of funds to this school. Population increase impacts the government rate of providing and supporting this school. Corruption is a hindrance to the market system affecting the demand and supply of public goods (Lesson 2, Slide 1). Therefore, this is another factor which hinders profit maximization from the public good since resources and funds are looted through corruption thus leading to poor government services and management to these public goods (Lesson 5, Slide 6).