Development Through Public Private Partnership Essay

2218 words - 9 pages

Sclar (2000) provides a simple definition of privatization as the process of providing public services and goods that will be managed by private entities. While this definition leans more on the transfer of ownership and changes in the mechanism of distribution, this also pushes for issues regarding efficiency and quality. Arguments on which entity should control the public resources also come with the question of who handles it more effectively. As this issue involves the public sector and how the government will run the nation’s resources, the common notion in the process of privatization as the way of earning revenues of private companies create concerns to the public of the real interests behind this move. In analyzing this subject, considering certain conditions is necessary to understand the potential benefits and risks of going through this step.
Due to the Philippine’s move towards development, the increase in government spending is inevitable. This requires a source for a larger budget which can be funded by selling assets. Profits can be obtained from these assets if it will be managed properly but maybe due to the political issues and economic crisis, many of the assets are sold or proposed to be sold to private companies. According to the Department of Finance, the national government reported a budget deficit at P53.22 billion for July 2013 which at that period total a P197.84 billion government expenditures compared to the P144.62 billion revenue that can be exhausted. This situation portrays how the government spends much for different kind of projects and why it ventures in privatizing its assets. Privatization also make it possible to remove all the cost the government has to take in managing public utilities like water, electricity, transportation, telecommunication, etc., This reflects whether our government is poor in terms of management or this is a move through privatization where it reduces its role and make the market function on its own.
The conversion of the industries is also supported by the idea of a free market which limits the government in the market processes. Privatization is backed up by the market strategies and ideologies that focus more on the increase in production efficiency which is the opposite of the government’s function to increase public welfare and solve the problems in the society. This raises the argument of how the private institutions will reflect its effectiveness in distributing products to the level of consumption of the public which is restricted by factors such as income, price levels, etc. This is where the government is suggested to intervene, what kind of agreement it should use to prevent the greed of corporation.

II. Forms of Privatization
Different kind of transaction happens between the two sectors which are significant to consider if we will form a strategic type of privatization. The risks brought by privatization can be reduced in the process of contracting where in the...

Find Another Essay On Development through Public-Private Partnership

Social Partnership Benefits Essay

2510 words - 11 pages INTRODUCTION The purpose of this study is to highlight if Social Partnership and Social Partnership Agreement can benefit a country or region and to highlight the many possibilities of why this area may have failed in certain areas such as Jamacia and why it was it was so successful in Ireland. Social Partnership can be defined as a tri or multi-partite arrangement involving employers, trade unions, public authorities (the state and/or local

Social Partnership Was a Beneficial Feature in the Policy-Making System and Should be Retained

1862 words - 7 pages economic success over the lifetime of the seven Social Partnership agreements and “the sustained boom that became known as the Celtic Tiger transformed Ireland” (Allen 2000 p.4). Starting in 1987 at a time of high unemployment, forced emigration, above average levels of poverty, high inflation and weak economic growth, the Programme for National Recovery set out to address these issues and more through increased deliberation with the social

The Irish Model of Social Partnership

2056 words - 8 pages The Irish model of social Partnership has received little more that lip service in the Caribbean. Evaluate the strength, weaknesses, opportunities and threats of this concept in the Caribbean. What is Social Partnership Social partnership refers to cooperation among government, the private business sector and labour on strategies to address immediate and long-term economic and social challenges. Such strategies can include controls on wages

Conscientious Objections to Same-Sex Marriage

1616 words - 7 pages public office workers and private religious groups. According to recent publications in Metro Newspaper, agreement between the Scottish Government and the United Kingdom Government has been reached on a proposed simultaneous amendment to the Equality Act 2010 in relation to the Marriage and Civil Partnership (Scotland) Bill. The urgency for Equality Act 2010 amendment as proposed by the Scottish government is reflected in McClintock v. Department

Legal Structure of a Business Orgnanisation

1984 words - 8 pages . Until the successive Conservative governments of Thatcher and Major (1979-1997), there were many public corporations in the UK providing a huge range of services to consumers. However, the Conservatives sold many of these public corporations to the private sector - this process is known as privatisation. Central government pays for the public goods and merit goods through taxation (e.g. Income Tax), whereas local

GIFT project

978 words - 4 pages different countries could enjoy wide access to the improved tilapia strains without paying high fee for the patents. Research institutions worldwide were also able to continue the breeding process. The global network created for dissemination of tilapia could serve for other technologies in the future. 4. Partnership Strategy The public-private partnership in the GIFT project provides a good foundation for successful R&D efforts. The

Examination of Broadband Deployment: Public vs. Private Sector

2291 words - 9 pages because of the current economic crisis and budget cuts within the state government. Also, the public sector lacks the knowledge of private telecoms therefore making the decision making process longer and more confusing. For example, Wilson County confessed that economic development leaders had to learn along the way during the development of the “Greenlight” a public service that currently provides broadband to the entire county. Therefore the

The Difference Between Collaboration Advantage and Collaboration Inertia

991 words - 4 pages , organizations like cost intensive research and development organization collaborates to share the similar resources. Efficiency – First perspective is efficiency in public service delivery. For example, public-private collaboration has been promoted by the government because private enterprises are more efficient in providing services than public enterprises. Second perspective is gains due to the economies of scale. For example, companies may outsource

Relationship between politics and transport planning

2267 words - 10 pages infrastructure”. A public-private partnership is an institutionalised form of relationship of public and private actors who work together towards a common goal, with their separate objectives (Ni, 2012). Public-private partnerships can play both positive and negative roles. Public-private relationships can play a positive role in the politics of public transport investment and policy is through the investments that are gained from national and

Is Private School Educationally Better than Public School?

1328 words - 6 pages with the cost of tuitions and fees. Private schools do not receive tax revenues but are funded through tuition, donations and private grants. In the public school system, the twin engines of political support and economic revenue base are critical. In private schools the ability to attract endowments and other forms of financial support are just as critical. Private school facilities reflect the success of the schools development team and that of


840 words - 4 pages social development. The Rationale for Public Intervention in Urban Planning and Metropolitan Development The justification for public intervention in urban planning and metropolitan development is to supplement government efforts in providing goods and services. It is the issue of the public working together with the private sector in development partnership. The public sector gains from the competence in production, industrial and marketing skills

Similar Essays

Private Sector’s Perception Of The Risk Allocation In Public Private Partnership (Ppp) Arrangement

1013 words - 5 pages through better allocation of the risks. Hence, the objectives of this research is: i. To identify the risks commonly share and transfer to the private sector in PPP. ii. To assess the acceptability of risks by the private sector in PPP iii. To evaluate the opinion and perception of private sector regarding risk allocation in PPP. Works Cited Batley, R. (1996). Public-Private Relationships and Performance in Service Provision. Urban Studies, 723

Introduction To Public Private Partnership Shanghai University Of Finance And Econmics Essay

2251 words - 10 pages Introduction to Public Private Partnership PPP is an agreement/contract between Public agencies and Private sectors. Public and Private sectors joins hands to undertake a project. Public and Private Partnership may be defined as " A corporate venture between the Public and Private sectors, build on the expertise of each partner that meets clearly defined Public needs through the appropriate allocation of resources, risk and rewards. PPP is a

Farming And Natural Resource Dynamics Under Public Private Partnership In Eastern Zambia

1480 words - 6 pages 4. Results 4.1. Contribution of PPP to Sustainable NRM in Game Management Areas The PPP’s private sector comprises the director, regional extension coordinator, senior extension officers, extension officers (chiefdom level) and chiefdom area managers. They are responsible for the business aspect of the PPP model in Lupande GMA. On the public side are registered households organised in various producer groups around various product lines that

Economic Growth In Ireland From Social Partnerships

1605 words - 7 pages ) Barbados is one of the developing countries found in the Caribbean. Springer the author of Barbados Public-Private Sector partnership found that: It has been generally agreed that the Barbados Social Compact was instrumental in turning the declining fortunes around through a focus on a fixed exchange rate with the US dollar, which is supported by macro-economic policies including freezing of wages and prices. It is here to stay. This was further