Does the privatizing of policy formation threaten democracy? Arguments from the Israeli experience

Since the 1970s, the literature on privatization has tried to find the right balance between the public interest and the neoliberal spirit of modern economies. This article examines the implications of one such process – the privatizing of policy formation. Using examples from Israel, we maintain that allowing private interests to formulate public policy is unique among other types of privatization strategies. We seek to identify the challenges and risks that such an approach to formulating public policy poses. We conclude that the privatizing of far-reaching policies should be done with caution and within parameters outlined by law in order to prevent the potential damage that such privatization efforts might have on democratic governments.