UK Starts Down Path of Privatizing Public Service to Cooperatives

The new Cameron government has followed up on its pledge to privatize public services through what the British call "mutuals" (we would call them cooperatives). The first wave of 12 so-called "Pathfinder Mutuals" will act as a pilot for an envisioned much larger program. The mutuals will be run by the staff and owned variously by employees, customers, or other entities tied to the services being provided. The 12 were selected from thousands of proposals submitted to be part of the initial program. The new companies will receive free technical support from a variety of consulting firms as well as the staff of the John Lewis Partnership, the large employee-owned retailer, and the Baxi Partnership, which provides advice to employee ownership companies. Among the new enterprises will be employee-owned companies providing services for the homeless, programs for people with disabilities, and an agricultural college.