Moving Toward Mixed Service Delivery: The Growth in Schools Run by Non-Governmental Providers in Ten Cities

ABSTRACT

The delivery of public services by a mix of government and non-governmental organizations can offer many public policy benefits. When direct governmental provision has predominated, however, achieving these benefits requires building the supply of non-governmental service providers, which requires understanding how to improve their availability and quality. Integrating the literature on contracting and mixed delivery, this article specifies three categories of supply-building tactics: creating markets, buying smart, and managing markets. We then report on 10 cities that have nurtured the supply of schools run by non-governmental organizations. We find that cities’ supply-building efforts fall along a continuum from passive to active, and they employ some types of tactics (creating markets, buying smart) more than others (managing markets). Differential changes in market share across the cities we studied suggest a relationship between supply-building activities and movement from exclusive governmental provision toward the mixed delivery of schools. These findings suggest hypotheses for future research on governmental efforts to build the supply and capabilities of non-governmental service providers in order to pursue mixed service delivery.