As Brad Spangler points out, there's privatization, and then there's privatization. This is one area where "right" libertarians have been running the table on "left" libertarians for decades -- and it's time and past time to ask whether or not the whole idea -- at least as implemented -- is really good for liberty.
Dr. Rampart recognized Carey Sanford of Liberation. "Is the Revolutionary Agorist Cadre a friend or foe of corporate capitalism?"
"A foe. Agorist theory recognizes that most of the evils attributed to capitalism were true of it -- but caused by its historic role of private industry working hand in hand with governments. An extreme form of this is fascism."
"But isn't the Cadre itself a corporation?"
"Oh, my, no. We are a joint-stock company with all profits automatically reinvested to maximize operating capital -- a deferred-profit venture, if you will. Corporations are creatures of the State, created by it and having two privileges that protect them from market pressures. First, corporate liability for damages to others is automatically limited by fiat; and second, responsibility is shifted away from individuals to a fictional entity."
-- Alongside Night by J. Neil Schulman
Speaking of which, I think it's high time for that that novel to return to prominence as a promotional tool for the New Libertarian approach.
But, be that as it may, the point was, uh, um ... oh, yeah. Just because the state is "handing off" some assets or programs that were previously associated with it, it doesn't follow that the power of the state is diminished or that human liberty is enhanced. What are they handing off? Who are they handing it off to? Cui bono?