'P' is for Privatization

Here's a mid-August pop quiz for you: What's the difference between government-sponsored enterprises and government corporations?

Give up?

Government-sponsored enterprises are privately owned corporations created by the federal government. Fannie Mae and Freddie Mac are examples.

Government corporations are independent entities within the government that operate like businesses and generate revenue. Federal Prison Industries, Inc. (UNICOR) and Amtrak are examples.

Now, what's the difference between most efficient organizations and performance-based organizations?

In an era when government agencies are increasingly considering privatization, outsourcing, and other ways to improve efficiency, the differences between various approaches to making government more entrepreneurial are not just semantic.

To help people understand the jargon of privatization, the General Accounting Office has created a pocket-sized glossary containing 25 of the most commonly used terms and phrases.

The glossary gives succinct definitions of franchising, managed competition, service shedding, activity-based costing and more.

Rep. Scott Klug, R-Wis., who is heading a House task force on privatization, asked GAO to create the guide.

The glossary can be downloaded from the GAO Web site.