Nobel economics laureate defends the role of the public sector

Bengt Holmstrom, the Finnish born Nobel economics laureate in 2016, defends the role of the public sector. “Privatization has been a source of polarization in Finnish politics, particularly during the current government. Holmstrom said that those duties the state has taken over are usually what the private sector cannot cope with. ‘Therefore it is not sensible to copy the practices of the private sector to the public services. It is a huge mistake,’ he said.”