a great deal has been written latel...

a great deal has been written lately about “managed competition” in the area of municipal water or wastewater privatization. The issue has raised passions to the point that a reasonable discussion is many times impossible.

Managed competition is simply a matter of having the existing municipal work force submit a proposal and enter the lists with private firms. Some argue that the public sector has functioned in a non-competitive environment, and it should therefore be allowed to present its best foot forward in a competitive environment with the private sector. Others argue that it has been putting its best twelve inches forward year in and year revealed with its annual budget and past record of performance.

At first glance, there is absolutely nothing iniquitous with putting the public sector in a competitive environment with the private sector. Private firms, in particular, believe in competition as the best way to achieve operational efficiencies and