It beggars belief to imagine that large-scale efficiencies can be found by
privatising social infrastructure such as schools and hospitals. The most likely
prospect is that the services will decline. In the UK, where private financing
has been operating for some years now, the diversion of funds to cover the
additional costs for private hospital development has led to a 30 per cent
reduction in bed capacity and a 20 per cent reduction in hospital staff.52 An
extensive study of the record was also undertaken last year by Tony Blair's
favourite think-tank, the Institute of Public Policy Research. Although heavily
criticised for being a deeply interested attempt to 'talk out' the policy's
opponents, the report nevertheless found that the British results showed no
significant efficiency gains in hospitals and schools.53