PPP_Essay 1
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The document discusses public-private partnerships (PPPs) in providing public services. It outlines three types of private sector involvement according to Batley: programmed privatization where the government contracts out aspects of services; pragmatic privatization where contracts involve private sector management for convenience; and informal privatization where private firms get involved due to public service failures. PPPs can enhance efficiency and cost-effectiveness but the government still retains responsibility for some essential services in the short term. Not all services are suitable for private provision due to issues like natural monopolies, need for equitable access, or if the service is a public good. The document analyzes waste collection and primary education in the author's city and concludes that waste collection is more suitable
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PPP_Essay 1
- 1. Essay 1: PPPs 442450 According to (Batley, 1996, p.3), the key elements of private sector involvement include: ‘‘Programmed privatization, where the government roll out contracts and sell certain aspects of it, Pragmatic privatization, where inception of contract involve the private sector, considered due to management convenience which enhances commitment; informal privatization occurs where the failure of public services calls for private firms involvement to offset the deficiency’’. The entrepreneurial aspect of this theory enhances the economy, ‘’when government sells out assets to private sector or contract-out aspects of it’’ (Batley, 1996, p.3). Also, the concept enhances efficiency in public service delivery as well as ensuring cost-effectiveness in public service delivery through a collaborative effort with the private sector. Notwithstanding, the government responsibility of providing certain public services like water and sewerage have been reduced and shared through the involvement of the private sector. There is an assurance of public interest during short term contracts where the government retains control of public service delivery after the private sector involvement (Batley, 1996). This concept brings to bear the necessity for private sector to ensure convenience in managing public services which results in soaring commitment. Market failure requires exist, when market is in the hands of forces of demand and supply; as in the case of natural monopoly good, hence, ‘‘private firms cannot deliver them adequately’’ (Batley, 1996, p.4). Furthermore, the provision of a public essential good like electricity which is one of the basic amenities of society requires a fair distribution in service delivery hence public sector intervention is nonnegotiable in certain developing countries. Correspondingly, slum upgrading projects, May not only affect the end user but the society at large, this situation calls for public sector intervention. Batley (1996, p.7) argued that; ‘’the provision of an infrastructure in a slum area where tax payers who are beneficiaries cannot be exempted’’, hence, there is a cause for government intervention to ensure positive impact on the socio-economic livelihood of the people. The Potential for Cost recovery is an indicator for partnership, that is, the propensity of the private firm to recoup its investment cost during a reasonable period of time. Also the potential for competition, the room for competition among other providers is a requirement needed to test the attractiveness of service provision. Furthermore, not all goods and services are properly handled by private firms, this also brings in mind equity concern and externality. If service is public good then the degree of marketability is regarded to be low. Critically assessing the services in my city, it is realized that domestic waste collection is ripe for partnership. The provision of primary education is the least ripped. Domestic waste collection is characterized by a high cost recovery potential venture. This is coupled with the existence of large amount of waste which is generated by households increase as population grows; competition in this sector is very high. Moreover, the waste collection service is regarded as a private good, therefore requires more effort from the private sector to manage it better due to the issue of efficiency. This has a direct influence on the rate of preventable diseases in the city.
- 2. Nevertheless, primary education is not ripe for partnership in the sense that, primary education is seen as a public good, hence, low level of competition in the delivery of service. Moreover, there is free access, hence private firm will not be able to recoup its cost of investment in the long term and the issue of equity concern is a major indicator in the delivery of this type of service as stipulated in the 1992 constitution of Ghana. (598 words) Reference List • Batley, R. 1996. Public- Private Partnership and Performance in Service Provision in Urban Studies. Vol 33, Nos.4-5,723-751. Note: This article reveals the debate for private-sector involvement in service provision which is the prevailing condition in certain countries of Latin America, Africa and Asia. in view of this many developing countries are switch to privatisation from several sources, this is done partially from their experiences.the reason why this is so is the negative implication realised from maintaining the suplly of public services, there exist pressures from donors who play critical role in informing their programme modules. The basic factor underlying these privitisation is the issue of institutional inefficiencies, government failure by public monopoly.,high level of bureaucracy.