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[Annotated] The promise and pitfalls of privatizing public assets
af334 2017. 6. 28. 09:41Privatization can increase efficiency 1 2 and spur investment 3. It can also go wrong
Donald Trump ran for office promising to spur the private sector 4 to rebuild 5 6 America's roads, bridges and airports. But it seems that Republicans want to start their modernization in the sky 7 8. On June 21st House Republicans unveiled a bill 9 that would privatize 10 air-traffic control 11 12, a policy the president announced earlier this month. If the administration is to be believed, this is just one of many privatizations that could increase efficiency and encourage infrastructure investment. Could such a national sell-off 13 work?
Unlike much of world, America has never seen a big push to privatize 14. That is partly because 15 America did not see a wave of nationalizations 16 after the second world war, as countries like Britain did. As a result, it has few public assets 17, like airlines or telephone companies, that are obvious candidates to be sold. An exception is land owned by 18 the federal government, which covers 28% of the country. Another is the Tennessee Valley Authority, a public electrical utility established as an economic development project 19 after the Great Depression. (President Obama entertained 20 privatizing the TVA 21during his second term, but did not get round to 22it.)
Yet America is hardly at the forefront of 23 private infrastructure ownership 24, either. Its airports, for example, are mostly publicly run, whereas in European cities such as London multiple privately owned airports compete 25. Though America's railway tracks are privately owned, its national passenger services 26 are all run by one lumbering state-owned firm 27, Amtrak 28. And air-traffic control is choked of investment by the annual budget process 29 30. Countries like Canada have turned their systems over to self-funding 31, non-profit bodies 32 33, which are investing in technology. Tracking aircraft with satellites 34 rather than radar may soon allow planes to fly closer together on some routes. America is already five-to-ten years behind 35, says Bob Poole of the Reason Foundation, a free-market think-tank 36.
Privatization works when firms can run assets or services more efficiently than the government can, or when competition between firms can bring down costs over time 37 38. Sometimes it is easier for private companies to set prices properly 39. For example, America's airports charge planes to land in proportion to their weight 40; were they privately owned, they would probably base price on runway congestion 41, which small planes are prone to 42cause.
Privatization can also provide a cosmetic accounting benefit 43 44, by keeping costly infrastructure investment from pushing up 45 deficits 46 47. This may lie behind the administration's wish to encourage "asset recycling" 48, a term coined in 49 Australia. The idea is to lease 50 one piece of infrastructure, such as a toll road 51, to investors, and spend the money raised on something new.
Cheerleaders for asset recycling envisage states leasing stretches of the sprawling 52 interstate 53 highway system 54 to private tolling companies 55, raising vast sums for new investment. This has not happened much before, partly because a law from 1956 bans tolls on 56 many interstate roads. But much of the system is now at the end of its intended lifespan 57 and politicians are mostly unwilling to raise petrol taxes 58 sufficiently 59 to replace or upgrade it. So lifting the ban on 60 tolls seems appealing 61 62.
Whether asset recycling works depends on the details of any given deal 63. It has a mixed record. In 2006 Indiana sold a 75-year lease on a 157-mile (253km) toll road in the north of the state for $3.8bn. The funds were invested in other roads. The state built 413 miles of new highway and resurfaced 64another 4,000. The firm that bought the toll rights overpaid 65 and went bankrupt in 662014. But other investors have since taken over the lease 67 68, with no noticeable downsides for 69 70 drivers, according to Aaron Renn of the Manhattan Institute, a think-tank. In fact, the public purse benefited from 71 the overpayment 72 73.
But it is equally easy for the taxpayer 74 to end up on the bad side of a deal 75, and for an unwieldy monopoly 76 to be created 77. In 2008 Chicago leased its parking meters to a consortium 78 for 79 75 years for $1.2bn, a price that was almost $1bn too low, according to a report by the city's inspector-general 80. Big rises in parking charges caused a public backlash 81, while the city lost the right to change parking policies without compensating investors 82. Worst of all, rather than being invested in new assets, the money raised was used to plug the city's short-term deficits 83.
Avoiding the temptation to squander the proceeds 84 85is the first challenge for any privatization. It is also important to get the length of the lease right. Very long-term deals are likely to have to be renegotiated 86, says Jose Gomez-Ibanez, of Harvard Kennedy School, because circumstances change 87. The public must also be won over 88. The ideal model for roads would be to impose tolls only once they have been repaired 89, says Mr Poole.
It would be up to the states to get such details right. They own most of the relevant assets, like the interstate highways 90 (though these are regulated in 91 Washington). The federal government's role would be to help, or just to get out of the way. During his campaign, Mr Trump promised to 92 provide $167bn in tax credits 93 to the private sector 94 to encourage investment. His administration also recently promised to allow more private infrastructure projects to issue tax-free debt 95, much as cities can while they are in charge.
The problem, though, is not a lack of willing investors 96, says Mr Poole. Infrastructure funds will jump at the chance to 97 invest in American projects, as will pension funds 98 seeking long-lived assets 99. The problem is a lack of opportunities. The logical place to start 100, then, would be to expand existing pilot programmes 101. In 1996 Congress set up such a scheme for 102 privatizing airports. Only one, in San Juan, Puerto Rico, has so far taken advantage of it. Similarly small pilots exist for putting tolls on interstate highways. The White House has also said that it is considering encouraging states to privatize assets by paying them a bonus for doing so.
The privatization push may not succeed; it will certainly spark political opposition 103 104. (The air-traffic control proposal is said to 105have too little support to get out of committee in the Senate.) If it does go ahead 106, America's infrastructure will probably benefit. But do not expect every deal to go well.
- privatization ; [명사] 민영화, 사영화, 사유화 [본문으로]
- efficiency ; 1. [U] 효율(성), 능률 [본문으로]
- spur ; (-rr-), [vn] 1. ~ sb/sth (on) (to sth/to do sth) 원동력[자극제]이 되다, 자극하다 [본문으로]
- run for office ; 공직에 출마하다 [본문으로]
- private sector ; [명사] (국가 경제의) 민간 부문 ;; 참고 the public sector [본문으로]
- rebuild ; (re・built , re・built / ˌriː'bIlt /), [vn] 1. (건물 등을) 다시 세우다[재건하다]; 다시 조립하다 [본문으로]
- modernization ; [U] 현대화, 근대화 [본문으로]
- in the sky ; 하늘에서, 천국에서. ;; 흐름상 "할 기미가 없다" 정도의 의미 [본문으로]
- unveil ; 2. (새로운 계획・상품 등을) 발표하다 [본문으로]
- bill ; 4. IN PARLIAMENT | (국회에 제출된) 법안 [본문으로]
- privatize ; [타동사][VN] (기업・산업 분야를) 민영화하다 [본문으로]
- air-traffic control ; [명사] 공항[항공 교통] 관제(管制) (약어 ATC). [본문으로]
- sell-off ; 1. (英) (정부에 의한 산업・서비스의) 매각 [본문으로]
- push ; 3. EFFORT | ~ for sth 분투 4. EFFORT | 격려, 독려 [본문으로]
- partly ; [부사] 부분적으로, 어느 정도 [본문으로]
- nationalization ; 2. 국유(화), 국영 ;; 사전에는 불가산으로 되어있으나 가산으로 활용한 것을 확인 [본문으로]
- public assets; 공적 자산, 공공 자산 [본문으로]
- land ; 3. AREA OF GROUND | [U] (격식 lands [pl.]) (매매가 가능한 소유물로서의) 땅[토지] ;; 참고 no-man’s-land [본문으로]
- utility ; (pl. -ies) 1. [C] (특히 美) (수도・전기・가스 같은) 공익사업 [본문으로]
- entertain ; 3. [타동사][VN] [진행형으로는 쓰이지 않음] (격식) (생각・희망・감정 등을) 품다 [본문으로]
- TVA ; 테네시 강 유역 개발 공사 (Tennessee Valley Authority) [본문으로]
- get round to ; ~을 할 시간[짬]을 내다 [본문으로]
- at [in.to] the forefront of ; (~의) 선두에(서)[로] [본문으로]
- ownership ; [U] 소유(권) [본문으로]
- compete ;1. ~ (with/against sb) (for sth) 경쟁하다 [본문으로]
- passenger service ; 여객 수송 [본문으로]
- lumbering ; [형용사] (육중한 덩치로) 느릿느릿 움직이는 [본문으로]
- Amtrak ; [명사] 전미(全美) 철도 여객 수송 공사 ;; US·UK [ǽmtræ̀k] [본문으로]
- choke ; 2. [타동사][VN] 목을 조르다 4. [타동사][VN] ~ sth (up) (with sth) (통로・공간 등을) 막다[채우다] [본문으로]
- budget process ; 예산 책정 절차 [본문으로]
- turn sth over to sth ; (용도·기능을) ~으로 전환[변경]하다 [본문으로]
- self-funding ; 자체, 자가 자금 지원, 조달 [본문으로]
- non-profit body ; 비영리 단체 [본문으로]
- track ; 2. FOLLOW | (특히 특수 전자 장비를 이용하여) 추적하다 [본문으로]
- be years behind ; 수년을 뒤쳐지다. [본문으로]
- think-tank ; [NOUN] A think-tank is a group of experts who are gathered together by an organization, especially by a government, in order to consider various problems and try and work out ways to solve them. [본문으로]
- bring (sth) down ; ~을 줄이다[낮추다] [본문으로]
- over time ; 시간이 흐르면, 지나면서 [본문으로]
- set a price ; 가격을 책정하다 [본문으로]
- in proportion to[with] ; …에 비례하여, ~와 균형을 이루어 ;; 반의어 out of proportion to[with] [본문으로]
- base ; [타동사] 1. …의 기초를 두다; 기초로 하다 ((on)) [본문으로]
- be prone to ; ~하기 쉽다, …을 잘 하는, …의 경향이 있는. [본문으로]
- cosmetic ; 1. 겉치레에 불과한, 허울뿐인 [본문으로]
- accounting benefit ; 회계상의 이익 [본문으로]
- keep sth from sth ; ~에 ~이 들어가지 않게 하다 [본문으로]
- push up ; 2. [가격]을 올리다; [수량]을 늘리다 [본문으로]
- deficit ;1. (경제) 적자 참고 surplus 2. 부족액; 결손 [본문으로]
- lie behind ; (진짜 이유가) ~ 뒤에 숨어 있다 [본문으로]
- coin ; [vn] 1. (새로운 낱말・어구를) 만들다 [본문으로]
- lease ; ~ sth (from sb) | ~ sth (out) (to sb) (특히 부동산・장비를) 임대[임차/대여]하다 [본문으로]
- toll road ; 유료 도로 [본문으로]
- envisage ; [동사] (美 주로 en・vis・ion) (미래의 일을) 예상[상상]하다 ;; US·UK [ɪn|vɪzɪdƷ] [본문으로]
- sprawling ; [형용사] (명사 앞에만 씀) 제멋대로 뻗어[퍼져] 나가는 [본문으로]
- interstate ; [형용사] (명사 앞에만 씀) (특히 미국에서) 주와 주 사이의, 주간의 [본문으로]
- highway ; 2. (英 격식) 공공 도로 [본문으로]
- toll ; 1. [C] 통행료 [본문으로]
- lifespan ; [명사] 수명 [본문으로]
- be unwilling to ; ~하는 것을 꺼리다, 마음 내키지 않다 [본문으로]
- petrol tax ; 휘발유세, 기름값에 붙는 세 [본문으로]
- lift ; 4. REMOVE LAW/RULE | [타동사][VN] (제재를) 풀다[해제/폐지하다] [본문으로]
- lift[remove] the ban on ; ~에 대한 금지를 없애다, 금지령을 해제하다, …을 해금(解禁)하다 [본문으로]
- appealing ; 1. 매력적인, 흥미로운 [본문으로]
- any given ~ ; 어느 때[곳, 것]도, 항시 [본문으로]
- resurface ; 2. [타동사][VN] (도로 등에) 표면 처리를 다시 하다 [본문으로]
- overpay ; [타동사][VN] (over・paid , over・paid / -'peId /) [주로 수동태로] 초과 지급하다; (일의 가치에 비해) 너무 많은 보수를 주다 [본문으로]
- go[turn, become] bankrupt ; 파산하다 [본문으로]
- take over sth (from sb) ; (~로부터) (~을) 인계받다 [본문으로]
- lease ; 임대차 계약 [본문으로]
- noticeable ; [형용사] ~ (in sb/sth) | ~ (that…) 뚜렷한, 현저한, 분명한 [본문으로]
- downside for ; ~에 대한 불리한 점, 단점 [본문으로]
- the public purse ; [the ~] 국고(國庫) [본문으로]
- benefit from ; ~로부터 이익을 얻다 [본문으로]
- overpayment ; [UC] 초과 지불(금) [본문으로]
- taxpayer ; [명사] 납세자, 과세 대상자. [본문으로]
- end up on ; end up with 과 비슷한 의미로 이해 [본문으로]
- unwieldy ; 1. (사물이) (크기・모양・무게 때문에) 다루기 불편한[거추장스러운] 2. (시스템・사람들 집단이) (너무 크거나 복잡해서) 통제[조직]하기 힘든 [본문으로]
- monopoly ; (pl. -ies) 1. ~ (in/of/on sth) (상업) (생산・시장의) 독점, 전매; 독점[전매] 상품[서비스] ;; 참고 duopoly [본문으로]
- meter ; 1. [특히 합성어에서] (전기・가스・수도 등의) 계량기 ;; US.UK [|mi:tə(r)] ;; 참고 light meter [본문으로]
- consortium ; (pl. con・sor・tiums 또는 con・sor・tia / -tiə /) 컨소시엄, (특정 사업 수행 목적의) 협력단 ;; US [kən|sɔ:rtiəm] UK [kən|sɔ:tiəm] [본문으로]
- inspector-general ; (법률) 감사관, (pl. inspectors g-) [군사] 감찰관[감] ((略 IG)); [미군] 장비 점검 사관(士官) [본문으로]
- public backlash ; 대중 비판, 대중의 반발 [본문으로]
- compensate ; 2. [타동사][VN] ~ sb (for sth) 보상금을 주다 [본문으로]
- short-term ; [형용사] (주로 명사 앞에 씀) 단기의, 단기적인 ;; 참고 long-term [본문으로]
- squander ; [타동사][VN] ~ sth (on sb/sth) 낭비[허비]하다 [본문으로]
- proceeds ; [pl.] ~ (of/from sth) (물건 판매・행사 등을 하여 받는) 돈[수익금] [본문으로]
- renegotiate ; [타동사, 자동사] 재교섭하다; <계약·조약 등을> 재조정하다 [본문으로]
- circumstances ; [명사] 사정, 상황 [본문으로]
- win over ; 설득하다, 자기편으로 끌어들이다, …의 지원이나 동정을 얻는 데 성공하다 [본문으로]
- impose ; 1. [타동사][VN] ~ sth (on/upon sth/sb) (새로운 법률・세금 등을) 도입[시행]하다 [본문으로]
- interstate highway ; [명사] 주간(州間) (간선) 고속 도로. ~ system 주간 (간선) 도로망. [본문으로]
- regulate ; 1. 규제[통제/단속]하다 [본문으로]
- promise to ; 선거 공약 관련한 표현으로 pledge to 를 쓰기도 하지만 promise to 도 쓰는 것을 확인 [본문으로]
- tax credit ; 세금 공제 [본문으로]
- private sector ; [명사] (국가 경제의) 민간 부문 ;; 참고 the public sector [본문으로]
- tax[duty]-free ; [형용사] 돈・상품 등이 면세가 되는 [본문으로]
- willing ; 2. [주로 명사 앞에 씀] 기꺼이 하는, 자발적인, 열렬한, 적극적인 [본문으로]
- jump at ; (기회·제의 등을) 덥석 붙잡다[받아들이다], …에 선뜻 달려들다, …을 덥석 잡다(=be eager for) ;; [VERB] to be glad to accept [본문으로]
- pension funds ; (증권·금융) 연금 기금(年金基金). [본문으로]
- long-lived ; [형용사] 장수하는[장수한]; 오래가는[오래 지속되는] [본문으로]
- logical ; 1. (행동・사건 등이) 타당한, 사리에 맞는, 적절한, 적합한 [본문으로]
- existing ; [형용사] (명사 앞에만 씀) 기존의, 현재 사용되는 [본문으로]
- scheme ; [~ (for doing sth) | ~ (to do sth)] 1. (英) (운영) 계획, 제도 ;; 참고 colour scheme, pension scheme [본문으로]
- spark ; 1. [타동사][VN] ~ sth (off) 촉발시키다, 유발하다 [본문으로]
- political opposition ; 3. Actions by one political group against another political group, either by using governmental power or by popular actions such as protests; generally, disagreement in politics. [본문으로]
- proposal ; 1. [C , U] ~ (for sth) | ~ (to do sth) | ~ (that…) 제안, 제의 [본문으로]
- go ahead ; 2. 일어나다[진행되다] ;; 참고 go-ahead [본문으로]