Social capital and the privatization of public goods

Discusses the privatization of public goods and services in urban areas. Examines the common assumption that shifting responsibility for providing goods and services to private individuals will increase the sense of community or “social capital” that binds residents of an urban area together. Argues that privatization of goods such as public safety, education or community recreation may result in more spatially limited social capital, where individuals are less willing to cooperate for the common good. Shrinking the spatial dimensions of “community” to include only members of the same housing development or neighborhood may impose other costs to local governments that offset the expected savings from privatization.