Public Service Centers (PSCs) to Be Privatized: Mechanism Launches Early Next Year

Starting early next year, Public Service Centers (PSCs) will begin transitioning to private management. This was announced by Roman Sklyar, First Deputy Prime Minister, in response to a parliamentary inquiry. While the government assures strict adherence to laws and regulations, the initiative has drawn criticism from some deputies and the public.

Dec 9, 2024 - 15:25
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Public Service Centers (PSCs) to Be Privatized: Mechanism Launches Early Next Year
Photo taken from public sources

What’s Planned?

Roman Sklyar clarified that partners of the state corporation "Government for Citizens" will assist in providing services strictly within legal frameworks. The initiative involves engaging private companies to manage and deliver public services through PSCs.

Goals include:

  • Improving service quality.
  • Accelerating processes using market-driven mechanisms.
  • Reducing the strain on the state budget.


Criticism and Concerns

Majilis deputy Ekaterina Smyshlyaeva criticized the initiative, arguing that instead of privatization, the government should focus on improving the existing PSC system.

She highlighted key concerns:

  • Current problems stem from organizational inefficiencies rather than the absence of private sector involvement.
  • Privatization could lead to increased service costs and reduced accessibility for citizens.

Government’s Position

In his response, Sklyar stated that the privatization of infrastructure and transfer of back-office functions of the "Government for Citizens" corporation is not currently being conducted or planned. However, the partnership mechanism with private companies has been developed and will be launched next year.


Risks and Opportunities

The initiative carries both potential benefits and challenges:

  • Advantages: Private sector involvement could enhance service quality and optimize costs.
  • Risks: Increased costs for citizens and potential loss of control over critical infrastructure.

Experts and the public urge careful planning to avoid negative consequences.

The editorial board is not responsible for the content and accuracy of material taken, sent or obtained from other sources. The publication of such materials is for informational purposes only and does not imply automatic endorsement or approval of their content.

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