The privatization of public tasks and ownership transformation in Poland - the outline of the issue

Author:Katarzyna Solecka
Position:Faculty of Law, University of Bialystok, Poland
Pages:152-167
SUMMARY

The following paper focuses on the discussion on the two issues " the privatization as the transfer of ownership rights to the public wealth onto a private entity and the privatization of public tasks as the manifestation of the deviation of public law entities to perform tasks for the benefit of private entities. The two institutions cause a lot of interest. The two concepts are very often used as synonyms thus interfering with the proper perception of the changes carried out in the... (see full summary)

 
FREE EXCERPT
The privatization of public tasks and ownership transformation
in Poland the outline of the issue
PhD Student Katarzyna SOLECKA
1
Abstract
The following paper focuses on the discussion on the two issues the pr ivatization
as the transfer of ownership rights to the public wealth onto a private entity and the
privatization of public tasks a s the manifestation of the deviation of public la w entities to
perform tasks for the benefit of private entities. The two institutions cause a lo t of interest.
The two concepts are very often used as synonyms thus interfering with the proper
perception of the changes car ried out in the economy. The reasons for this state of a ffairs
may b e sought in at least two aspects, firstly, the a ll the action performed by the sta te
regarding the “public” property are in the area of common interest. The more the
disposition of the proper ty the forfeiting of the ownership right for the benefit of a pr ivate
entity tends to be “on the carpet”. Furthermore, the emotions are aroused when it comes
to the public and private collabor ation due to the fear of the a llegation of cor ruption. On
the other hand, the una waren ess and improper u nderstanding of the meaning of both
concepts leads to the erroneo us percep tion of the institutions which play a significant
however different roles of each in the sta te. It should be emphasized that between the
concepts of „privatization as the ownership transformation” and „privatization of public
tasks” may not be pu t an equals sign. The political, economic and social changes ta king
place cause adeq uate changes to the public administration. Thus the roles a nd duties a re
also changed which manifests in e.g. ena bling the enga gement of the public sector in the
coopera tion with a private partner (a s in private and public pa rtnership for exa mple). The
aim of the pa per is to indicate the elements defining the objective institutions, factors
allowing to distinguish the regula tions and pr imarily allowing to answer the question why
the two concepts may not be tr eated as iden tical. To explain the aforementioned I sha ll use
a few methods firstly to explain the concept of “privatization”, “privatization of public
tasks” I shall use the historical method. Then to indicate the possibility of the performance
of the public tasks in the EU law I shall use the compar ative method. The following method
used to discuss the objective issue is the analytical method the aim of the two r egulation
will be analyzed in or der to clar ify the inability to consider the privatization pr ocess as the
model for public and private colla boration.
Keywords: privatization, public ta sks, public-private pa rtnership, public
administratio n.
JEL Classification: K23
Introduction
The paper is devoted to the discussion on the two issues the privatization
understood as the transfer of rights to the public property to a private entity and the
privatization of public tasks understood as the manifestations of public entities
refraining from performing a task for the benefit of private entities.
1 Katarzyna Solecka - Faculty of Law, University of Bialystok, Poland, kmsolecka@gmail.com
Juridical Tribune Volume 3, Issue 2, December 2013
153
These two institutions cause a huge interest and are discussed. Over many
decades Poland existed in the economic “stagnation” caused by the state
intervention in the areas of its existence. It was the state which owned everything:
land, enterprises or hospitals. Private ownership and private business initiative
were marginalized (the worker or a farmer provenience assured a ”privileged”
position to attain education and professional promotion). The 70s of the 20th
century were full of financial crises which showed the lack of unlimited resources
of administration to realize public tasks. The following decade confirmed the trend
troubles of the public finances and thus the inability to realize the tasks assigned
to the state which forced the change of the perception of the role of public entities
as to the realization of public tasks. It was the beginning of the process of the
cooperation between the public and private sectors as this solution was perceived
as the development of the effectiveness of the administration or the growth of the
quality the provided services. The political, economic and social changes taking
place in Poland in the late 80s and 90s of the 20th century caused respective
transformation affected also the public administration. Thus the transformation
affected its roles and duties resulting in enabling the public sector to cooperate with
the private partner (e.g. as in the public and private partnership). At the same time
it is worth mentioning that there exist certain areas of the functioning of the state
which must not or are not recommended to be transferred to the competence of a
private owner. Due to the economic or safety reasons the owner of the areas should
remain a public entity (e.g. penitentiary services, schools) however the goal of
effective performance of tasks in these areas may be realized through assigning the
“realization” by private entities.
It is a common practice that the objective concepts are used as synonyms
and thus disturb the proper perception of the economic changes under way. The
reasons for such a state of the matter may be sought in at least two factors: firstly
all the actions of the state regarding the “public” property draw common attention.
The more, the disposal of the property the disposal of the property ownership
rights to the benefit of a private entity tends to put the issue “on the carpet”.
Furthermore, the emotions are aroused when it comes to the involvement in the
public and private collaboration due to the allegation of corruption. On the other
hand, the unawareness and wrong understanding of both concepts leads to an
erroneous perception of the institutions which have to play a significant role in the
state however different for each one.
It should be reiterated that between the concepts of privatization as the
“ownership transformation” and “privatization of public tasks” there should be no
equals sigh. The aim of the paper is to present the elements defining the subjective
institutions, the factors allowing to distinguish between the regulations and
moreover to allow to answer the question why the concept may not be identified as
the same.

To continue reading

REQUEST YOUR TRIAL