Asian Journal of Research in Social Sciences and Humanities
Year : 2011, Volume : 1, Issue : 4
First page : ( 23) Last page : ( 30)
Online ISSN : 2249-7315.

Economics of public private partnerships and investment in infrastructure

Geetha K.T.*, Professor, Malarvizhi V.**, Assistant Professor

*Avinshilingam Institute for Home Science and Higher Education for Women, Coimbatore.

**Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore.

Online published on 3 January, 2012.

Abstract

The developing world needs far more financing for infrastructure than can be provided by domestic public finances alone and through ODA. Around middle 1980s a new strategy based on the use of public-private agreements, relying on ODA to enhance the quality of projects, reduce risks and raise profitability was gradually implemented for the provision of infrastructures and public utilities. The paper explores public-private partnership in the light of persistent state failure, institutional constraints, and systemic weakness, which impede the service delivery. The paper focus is on key issues: whether public-private partnership facilitates innovation, and thereby enhances quality services, and essentially pro-poor reflecting equity concerns. This paper evaluates the more typical forms of private sector involvement and its actual importance and shows how the new strategy can help in improving the provision of infrastructures in the developing world.

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