PUBLIC-PRIVATE-PARTERSHIPS: PURPOSIVE PUBLIC POLICY INSTRUMENT OR 'RISKY BUSINESS'?

Public-private partnerships (PPPs) are everywhere: From the impersonal sphere of global governance to the more intimate setting of community governance PPPs are among the most-frequently used concepts presently, to describe... [ view full abstract ]

Public-private partnerships (PPPs) are everywhere: From the impersonal sphere of global governance to the more intimate setting of community governance PPPs are among the most-frequently used concepts presently, to describe the proliferation of cooperative arrangements between state (governmental) and non-state (non-governmental) actors, that have evolved from basic concessionary agreements to multi-sectoral networks. Especially for developing countries that have to abide by the policy prescriptions of the International Monetary Fund (IMF), these arrangements form a large part of the bundle of international aid and technical assistance.

PPPs have been designated one of the strategies for stimulating economic growth in the Jamaican economy. The National Development Plan – Vision 2030 has, through its National Strategy 12-2 focused on developing economic linkages and clusters, made strengthening partnerships between national associations, government and other public and private sector partners a central plank. PPPs are linked to wide-ranging positive policy outcomes and in the case of developing countries are developmentist in scope and orientation.

The primary objective of this paper is to determine the extent to which PPPs meet the theoretical values they are associated with in practice? Moreover, as instruments of public policy, are the dangers and risks inherent in these arrangements overlooked for shorter-term gains, in developing countries? Finally, the adoption of PPPs has yielded institutional innovation to mitigate risks, but simultaneously questions have emerged about the robustness of these institutions in certain context. Jamaica’s experience with PPPs is at a nascent stage and from all indications the results have been mixed. The research utilises a case study methodology to assess the praxis of PPPs in Jamaica. The research proceeds on the premise that PPPs more often than not result in the misallocation of risks and the expropriation of value from the public sector.