Answer to Question 1
Privatization does not address the overall problem of the size of government and the concentration of power and resources; it merely shifts the growth concentration from government agencies to private corporations. In fact, this may account for why government budgets and deficits continue to grow while the number of government employees remains the same or falls slightly. The government is still doing all these things but using private contractors to achieve them.
Answer to Question 2
Governments in smaller nations may deliberately avoid political and economic policies inconsistent with the goals of large corporations. In these ways, social policies in some nations may result not from the democratic wishes of the populace but from implied or explicit demands from powerful corporations. Corporations have intervened in the democratic process of nations by supplying campaign funds to particular political candidates or, in a few cases, by attempting to overthrow elected officials.
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