Starting from the premise that social policies represent solutions to
socially constructed problems (Edelman 1987), this article presents an
adaptation of Lukes's (1974) theory of power to consider three interp
retations of privatisation as illustrated in Britain and the United St
ates during the 1980s and early 1990s. Privatisation is most frequentl
y presented in political and academic discourse as essentially a matte
r of contracting out public services or functions and selling off stat
e assets. This 'first face' of privatisation coincides with a naive pl
uralist approach to power and a liberal capitalist vision of society.
While this view has some justification within a very narrow frame of r
eference, a 'second face' of privatisation is necessary to bring atten
tion to crucially related aspects of exercises of power, such as corru
ption, homelessness and social inequality, which may be products of co
ntracting out and sell-offs. Additionally, a second face view of priva
tisation highlights the privatising effects of certain policies which
are ignored, obscured or hidden by the first face view. An analysis of
public sector expenditure cuts as a process of privatisation is cruci
al in this regard. Finally, a 'third face' of privatisation, as a hege
monic project, is raised. Here, privatisation is viewed as having a cu
ltural and political mission, aiming to alter consciousness and effect
changes in power relationships. The hegemonic capacity of privatisati
on is considered through an examination of ideological constructions s
uch as the binary divide between private and public spheres and a soci
obiological rationale for policy.