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Privatization of social welfare services in Canada is promoted by national, provincial, regional and municipal governments through initiatives that emphasize public-private partnerships. Together with encouraging these partnerships as a privatization strategy, government also reduces public funding and replaces it with private sector contracting for social provision. An exploratory study of the Healthy Babies/ Healthy Children (HBHC) program found an increasing acceptance of privatization by service providers in Ontario. These findings illustrate the argument that government creates the context for market-based solutions. But can market-based solutions really solve social problems, and is this the intention of government social policy?