What concept involves introducing competitive forces into public service provision without complete privatization?

Managed Competition involves introducing competitive forces within public service provision while still allowing for public sector infrastructure and oversight without fully privatizing services. This concept aims to enhance efficiency and effectiveness in government operations by encouraging different entities—both public and private—to compete for the provision of services.

In managed competition, public agencies can compete against private companies, which can lead to the exploration of innovative solutions and improved quality of services at potentially lower costs. The government maintains control over the essential functions and the delivery of services while fostering a competitive environment that encourages better performance and accountability.

This distinguishes managed competition from public-private partnerships, which typically involve a long-term contractual agreement between the government and private entities for service delivery or infrastructure development, often with a larger scope and different implications for ownership and risk-sharing.

Performance budgeting focuses primarily on linking funding to outcomes and effectiveness rather than introducing competition. While outsourcing service delivery can involve contracting with private companies to deliver specific services, it does not necessarily include the competitive bidding aspect and retains less direct engagement from public agencies in the competitive process.