Assessing the performance of PPPs in Greek local government: The exit from the labyrinth of public sector inefficiency?

Performance improvement comprises the key issue of local government reforms in Greece over the past three decades. Even though these reforms contributed to a significant extent to the resolution democratic deficit and... [ view full abstract ]

Performance improvement comprises the key issue of local government reforms in Greece over the past three decades. Even though these reforms contributed to a significant extent to the resolution democratic deficit and representation problems of the national model of local government organization, their impact on municipal services performance remained particularly limited. Limited efficiency appears to impair both municipalities’ economic sustainability and citizens’ trust and satisfaction with their provided services .

It is emerged that key factors of these performance deficits in local government, comprise both the inherent restrictions of social capital in Greece, which characterized for its particularly low rates of trust and collaboration, centralization in decision making and also the failure to integrate innovative policy tools for the provision of municipal services . Such inhibiting factors of performance essentially highlight governance deficits in the organization and provision of municipal services in Greece.

In order to resolve these performance deficits in municipal services provision, various initiatives for the promotion of alternative institutional models of PPPs have been introduced from central government during the last ten years. Initiatives characterized from a limited impact, mainly due to the selected policy’s enforcement top – down approach, its limited responsiveness regarding local stakeholders’ needs and the appearance of red tape and market entry barriers . On the antipode of these policy limitations of PPPs model development in Greek local government, various good practices appearing in selected municipalities .Successful PPPs initiatives characterized from organizational innovation, effective inter – sectoral collaboration and social support, factors contribute to the improvement of provided services efficiency and quality.

Based on the combination qualitative and quantitative empirical data, research analyzes the prospects and the comparative efficiency of alternative PPPs models in the distinctive environment Greek local government, by focusing on 72 case studies from 9 different sectors of municipal services. Alternative PPPs models are evaluated according to their organizational arrangements and governance patterns, services provision methods and accountability and engagement strategies and their impact to projects performance. Research assess the conditions under which alternative PPPs models could lead to services efficiency improvement and contribute to the emergence of a new model of local governance in Greece, based on decentralization and public – private sector collaboration.

Empirical research is based on the results of a recently completed two year empirical assessment of 32 Greek municipalities which have experienced with the introduction and development of alternative PPPs models for municipal service provision from 2010 till 2016. Qualitative research includes the conduct of 94 interviews with stakeholders and the completion of 292 semi structured questionnaires.

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