private pubic partnership: non-government is effective
TRANSCRIPT
New Public Management
Private Public Partnership:
non-government is effective
by Evgenia Parkina
Definition
PPP refer to the private sector financing, designing, building, maintaining and operating infrastructure assets traditionally provided by the public sector
PPP describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector company
Private sector advantages
Management Efficiency Newer Technologies Workplace Efficiencies Cash Flow Management Personnel Development Shared Resources
Why do government need private sector?
Financial need - budget deficit, large debt Aging or deteriorating infrastructure Growing demand on public sector services Search for greater efficiency and creativity Strides to introduce competition Lack of domestic experience or skills Need to educate local contractors while
remaining competitive
Public sector advantages
Legal Authority Protection of
Procurement Policies Broad prospective
the competing Capital resources Goals to meet public needs
Benefits of PPP
Mitigates and properly allocates risks Provide incentives for lowering costs Ensures value for money Attract the right skills and management Expertise Promotes innovation Reduces corruption and waste Reduce burden on taxpayers ►
Pitfalls of PPP
The process of creating a PPP is much more demanding than a traditional procurement process
Failure to communicate: “We don’t speak the same language”
“What takes the government 50 years to achieve can be done by the private sector in a tenth of time”
Milton Friedman
Sources:
Darrin Grimsey, Mervyn K. Lewis Public Private Partnerships: The Worldwide Revolution in Infrastructure Provision and Project Finance, 2006
E. S. Savas Privatization and Public-Private Partnerships, 2002
Public-private partnerships: principles of policy and finance, Elsevier, 2007
