THE PROMISE AND PERFORMANCE OF PRIVATIZATION: THE KNOXVILLE EXPERIENCE

The promoters of privatization promise a lot, most especially cost savings. Upon what are these promises based and t o what degree is actual perfor mance consonant with them? This article investigates this question by first reviewing the privatization literature and specifying what is promised and the basis for these promises. We then proceed to examine the pri vatization of asingle service in Knoxville, Tennessee with regard to what basis promises were made and the innovation pursued. Finally we offer a preliminary analysis of the extent to which the privatization initiative lived up to its promises.