It was in The Age of Discontinuity*, incidentally, that Drucker introduced the concept of privatization, though he called it 'reprivatization.' He accurately forecast the disillusionment with government arising from the discovery that governments could not, after all, produce miracles. 'There is little doubt, for instance, that the British in adopting the National Health Service believed that medical care would cost nothing .... Nurses, doctors, hospitals, drugs and so on have to be paid for by somebody. But everybody expected this "somebody" to be somebody else.'
Drucker advocated privatization on the grounds that the purpose of government was to govern, not to 'do', and that the two roles were incompatible. His vision, unlike the Conservative Party's realization of it, was for privatization to cover all institutions, not merely business ones - universities, for example.
* Drucker, P.F. (1969) "The Age of Discontinuity", London: Heinemann
Source: Kennedy, C. (1992) "Guide to the Management Gurus:
Shortcuts to the Ideas of Leading Management Thinkers",
Surrey: Century Business; ISBN 0-7126-5645-6;
Ch 9 "Peter Drucker (b. 1909) Primary tasks for effective managers"; pg 41-49
Above quote is taken from pg 42
Wikipedia Page: Peter Ferdinand Drucker (19 Nov 1909 - 11 Nov 2005)