Ace_of_Lobster,
JumpinJesus is pretty much on the money. In this scenario, "public servcices" refers to things like air transportation (planes--not pigions
) and land transportation. Energy is one component, but so are things like education and hospitals. Many of these things have been nationalized in foreign nations but have been forced into the private market through Structural Adjustment Programs (SAPs)--the umbrella of JJs points.
Now, without getting into ideological debates, when a market segment is opened to private investment wealthy corporations and individuals are the ones with the capital to buy the particular means of production--leaving impoverished members of the society in the lurch--or at least leaving them to cater to the capitalists' demands. There are arguments from both sides of the ideological spectrum as to whether this will be ultimately beneficial to the citizens or not.
The main problem with SAPs is that they were based on a cookie cutter approach (at least initially--there has been mounting pressure to reverse that trend). That is, a program in Venezuela obviously won't necessarily be beneficial to the population and economic system of Jamaica--but the same program was used none the less.
A second problem is that in order to meet the growing debt (based on both the priciple but exacerbated by ballooning interest rates) the SAP calls for drastic cuts to education, public health, and other social net services--things that don't produce income (at least not in a short investment cycle) and can't return a quick and sizeable return on the investment. Hence, the loan can't be paid on and the bank doesn't get its money.
This relates to our economy in regards to the fact that in a global, capitalist economy where the States are the power brokers and investers, the main players are primarily US parties. Creating and opening private sectors allows corporations to have one leg over here as well as over there (read today's NY Times for the latest news regarding Ford's proposed closure of four new plants).
Job instability as well as foreign plants allows corporations to extract higer productivity from their workers without investing in advanced technologies or hireing more workers--at least not US workers (which is what we desperately need right now unless our society is ready for a dramtic shift in our modes of production and the types of goods/services we will continue to provide as a whole).
I hope that helps the discussion a bit.