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What are the advantages and disadvantages of an ‘internal market’ (quasi-market) in the NHS in the UK?
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Economics of Public Issues! Coursework! N0089998! Economics of Public Issues (ECON20091) Coursework N0089998 Question! What are the advantages and disadvantages of an 'internal market' (quasi-market) in the NHS in the UK? Answer! A quasi-market is an attempt to stimulate the operation of a competitive market within the public sector. In other words it is a public sector institutional structure that is designed to obtain the efficiency gains of free markets without losing the equity benefits of traditional systems of public administration and financing. A notable example would be the NHS Internal Market (introduced in 1990). Towards the end of the 1980s the Thatcher government began to look at extending the idea of privatisation into welfare services in the UK. However, straightforward privatisation of such services would be politically unacceptable - for example, the NHS is still held in high regard and voters expect it to be operated as a 'public service'. Therefore, a means had to be...
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