<P> The widespread provision of public utilities as public services in developed countries usually began in the late nineteenth century, often with the municipal development of gas and water services . Later, governments began to provide other services such as electricity and healthcare . In most developed countries local or national governments continue to provide such services, the biggest exceptions being the U.S. and the UK, where private provision is arguably proportionally more significant . Nonetheless, such privately provided public services are often strongly regulated, for example (in the US) by Public Utility Commissions . </P> <P> In developing countries public services tend to be much less well developed . For example, water services might only be available to the wealthy middle class . For political reasons the service is often subsidized, which reduces the finance potentially available for expansion to poorer communities . </P> <P> Nationalization took off following the World Wars of the first half of the twentieth century . Across Europe, because of the extreme demands on industries and the economy, central planning was required to make production maximally efficient . Many public services, especially electricity, gas and public transport are products of this era . Following the Second World War, many countries also began to implement universal health care and expanded education under the funding and guidance of the state . </P> <P> There are several ways to privatize public services . A free - market corporation may be established and sold to private investors, relinquishing government control altogether . Thus it becomes a private (not public) service . Another option, used in the Nordic countries, is to establish a corporation, but keep ownership or voting power essentially in the hands of the government . For example, the Finnish state owned 49% of Kemira until 2007, the rest being owned by private investors . A 49% share did not make it a "government enterprise", but it meant that all other investors together would have to oppose the state's opinion in order to overturn the state's decisions in the shareholder's meeting . Regulated corporation can also acquire permits on the agreement that they fulfill certain public service duties . When a private corporation runs a natural monopoly, then the corporation is typically heavily regulated, to prevent abuse of monopoly power . Lastly, the government can buy the service on the free market . In many countries, medication is provided in this manner: the government reimburses part of the price of the medication . Also, bus traffic, electricity, healthcare and waste management are privatized in this way . One recent innovation, used in the UK increasingly as well as Australia and Canada is public - private partnerships . This involves giving a long lease to private consortia in return for partly funding infrastructure . </P>

Summarize and give an example of how the government provides public goods