Reports on a study that questions whether private enterprise can maintain quality while reducing costs of providing social welfare services. Reviews three aspects of privatization: (1) competitive markets; (2) rationality; and (3) cost reduction. Concludes by questioning a central claim of economic theory: that free markets and private firms are…

Provides an overview of the problems and attitudes concerning educational financing of public education in Russia. Maintains that market mechanisms alone will be inadequate to meet the educational needs of all strata of society. The main burden of spending must be borne by the state. (MJP)