The Politics of Competitive Tendering: Political Orientation and Attitudes towards Contracting Out among Finnish Local Politicians

Using survey data on Finnish local politicians (n=364) we examine the extent to which political orientation affects attitudes towards and perceptions of competitive tendering in social and health service provision. Expectation of cost benefits turns out to be the most important factor accounting for willingness to increase the usage of competitive tendering. The perceived positive impact of tendering on local democracy is also related to local politicians' readiness to implement reforms. However, political orientation does have a strong effect on politicians' perceptions. We also consider whether there are mitigating factors that could mask the relationship between political orientation and attitudes towards tendering. We identify one such factor, municipal employment: public-sector employees form a kind of informal 'interest group' resisting public-sector reforms in municipal decision making. In general, our results suggest that macro-level studies on competitive tendering underestimate the effects of political ideology on local decision making.