Question

Pro and con for private-public partnership? Please i really need reference or the website for your answer

Answer 1

Private & public partnership (PPP) takes place when private and public enterprises come together and form a partnership to bring solutions to the people & society at large. It has different pros & cons. As pros, the first advantage is the shared risk & return between the government and private sector. With PPP, the investment funds and associated risk is distributed and it becomes not only the responsibility of the government, but also of private players to bring capabilities. As a result, return is achieved and shared between private and public parties. The second advantage is the reduction in the burden upon the government and the government can focus & dedicate its resources upon selected development programs. It will bring better results and welfare level will increase. The third advantage is the increased level of cooperation between the private players and the government. Till now, it has been observed that government acts as a vigilant agency to monitor the work of private sector. Now, with the PPP, these two sectors work together and complement each other. The R&D outcomes of the private players are complemented by the regulatory framework and other network owned by the public sector. The fourth advantage is the increased role of private sectors in nation’s development as PPP is more popular in infrastructure development projects of a long term nature.
Though, there are few cons also. The first disadvantage as cons is the profit making motives getting the top priority over the welfare motive of the development project. When a public sector takes the project, then welfare is one of the most important objectives. But, it becomes secondary when PPP takes place. The second disadvantage is the selective investment by the private players in PPP. As a result, the asymmetrical growth takes place. There is a scope of moral hazard when private sectors come with the public sectors and tax payer’s money is wasted. It is another disadvantage.

Reference:
The pros and cons of public-private partnerships. Retrieved from: <https://regina.ctvnews.ca/the-pros-and-cons-of-public-private-partnerships-1.1467738>