Capitalism, to oversimplify. The powers that be realised there was money to be extracted and they did it. Packaging it as beneficial for the people; the usual line is "healthy competition will lower the prices for consumers" but I have never seen this work in practice. We have a few areas with competition, like cell phones or health insurance, but the cost and service level differences between them is minimal and there is no competition. Or if there is, it's lower prices at worse service / quality - the race to the bottom.

Reprivatize shit and put it in the hands of someone competent. Also, increase wages so that government agencies don't depend so much on expensive consultants / contractors.