Recently, the media has zeroed in on a rumor that Chicago could lease its water system. Though the city has not confirmed such a deal, media coverage has helped spark an important discussion about the pros and cons of privatization.
For the past several years, MPC has been researching the potential for private investment to keep Illinois competitive, particularly by supporting new public assets such as enhanced transit. (On a separate but related front, we've also been vocal advocates, along with our partner Openlands, for improved regional water supply planning.)
Skepticism about privatization is understandable. On the one hand, public-private partnerships have potential to reduce traffic congestion or promote water conservation more efficiently than the public sector can alone. However, to protect public interests, a privatization agreement must ensure strong public oversight, reasonable profits, and infrastructure reinvestment. Without these benefits, privatization makes little sense and just increases costs for consumers.
Read MPC's letter to the editor of the Chicago Tribune for a balanced perspective on privatization, and then tell us what you think about this issue.