Private pubic partnership: non-government is effective

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Private pubic partnership: non-government is effective

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

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