Nearly all public services can be privatized, and would run more efficiently if they were.

Even roads, schools and hospitals can be quite efficiently managed privately, and can be managed on a user-pays basis quite efficiently.

• More and more roads are built privately on user-pays basis. Technological advancements such as eTags allow users to be charged if, and when, they use the road.
• Private health insurance, while not compulsory, has a punitive flavor. People who earn reasonable wages are discouraged from not taking it out.
• Private schools have always existed alongside their public brethren, and are receiving higher subsidies.

The key to making such institutions work effectively is to make them compete effectively with each other.

In fact the only institutions in society which cannot be easily privatized are the police, judiciary and military.

• While there have been moves toward private police forces (such as hired security guards), in practice these are limited to crowd control, fare enforcement, and personal protection.
• A effective private judiciary is hard for most of us to imagine. Mostly because it is hard to see how different judiciaries would compete. Models have been proposed for this, but they are unlikely to receive approval from any but the most ardent libertarian.
• Some nations have chosen to out-source their military (eg Kuwait), but most of us agree that in-house solutions based on loyalty, ultimately have a better deterrent and effectiveness than a group of mercenaries. Also, the thought of different military groups competing with each other in one's own country is precisely what they are supposed to avoid. Military bureaucracy is here to stay.

See

• Private Property Rights