[Excerpt] Elected officials and citizens are now learning in hundreds of communities that privatization is not the way to improve the quality and efficiency of public services. Cities such as New York and Phoenix, where privatization proliferated in the early 1980s, are now bringing work back "in-house." And in the federal government, despite a massive privatization campaign waged by the Reagan Administration, resistance by agency directors has resulted in a job loss of only 0.7% of all nondefense federal jobs. (The job loss rises to 2.1% if civilian defease department jobs are included.) A recent report by the U.S. Government Accounting Office concludes that privatization of federal employees' jobs is neither cheaper nor better.