Privatization and Public Opinion in Germany

Privatization has been a major issue around the world, but research on public opinion about it has been scarce. The German Social Survey provides an opportunity to compare citizen opinions from a formerly socialist-authoritarian regime with those from a democratic regime, in their opinions about privatizing banks, electrical power, and hospitals. As do citizens in surveys in other nations, Germans support privatization of the services in the order just given. Citizens from the east, where privatization led to sharp increases in unemployment, oppose privatization much more than do westerners. A LISREL analysis indicates that their opposition is not due to their concerns about its economic effects on themselves or the nation (economic pessimism), but more due to perception of the proper role of government (opposition to government spending), and sense of political efficacy. The analysis also reflects on the roles of other variables such as ideology, partisanship, gender, being unemployed, education, and preference for taxes versus public services. We discuss implications for theory and research on public opinion about government policies and services, such as the role of direct economic self-interest versus more symbolic and ideological orientations.