Public Private Partnerships (PPPs) are a system where government services are funded and operated through a partnership between government and a private company or citizen based organisation. PPPs are used extensively in developed countries, and increasingly in developing contexts. Contracting is a type of PPP. With careful design and management, contracting can bring benefits to the state including increased efficiency and the transfer of risks and costs to the private sector. However, criticisms of PPPs include the complexity of the contracting that underlies these partnerships and the considerable government design, implementation and monitoring capacity that may be required to realise these benefits. This is likely to be of greatest concern in countries with limited experience of working with the private sector.
Batley, R., & Mcloughlin, C. (2010). Engagement with Non-State Service Providers in Fragile States: Reconciling State-Building and Service Delivery. Development Policy Review, 28(2), 131-154.
The OECD questions whether non-state services in fragile states may delegitimise the state in the eyes of citizens, arguing that ‘state-building’ depends on governments’ engagement in service management. This article reviews the available evidence to identify what types of engagement are feasible and most likely to contribute to service delivery, or not to damage it. It considers the capacity requirements and the risks associated with state intervention through policy formulation, regulation, contracting and mutual agreements, and concludes by identifying ways of incrementally involving the state, beginning with activities that are least likely to do harm to non-state provision.
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OECD Partnership for Democratic Governance. (2010). Handbook on Contracting Out Government Functions and Services in Post-Conflict and Fragile Situations. Paris: OECD.
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Pérez-Ludeña, M. (2009). Towards a New Model of PPPs: Can Public Private Partnerships Deliver Basic Services to the Poor? (UNESCAP Working Paper). Bangkok: United Nations Economic and Social Commission for Asia and the Pacific.
This paper examines the difficulties of reaching the poor through Public Private Partnerships (PPPs). Case studies show that ‘pro-poor PPPs’ are possible: they need to incorporate some of the strategies and methods of the informal sector, and include civil society organisations among their partners. Governments should adapt regulations to accommodate these arrangements and encourage the participation of private companies, NGOs and community organisations.
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Patrinos, H.A., Barrera-Osorio, F., & Guáqueta, J. (2009). The Role and Impact of Public-Private Partnerships in Education. Washington, D.C: World Bank.
How effective are public-private partnerships (PPPs) at improving education in the developing world? This book argues that PPPs can increase equity in education systems and improve education quality. In addition, such arrangements can make service delivery effective and expand possibilities for financing the education sector. Although few rigorous studies have been undertaken, early indications from the recent private education boom indicate that heightened efficiency, more choice and wider access result. Overall, better test scores seem to come from privately-operated institutions, even if they are publicly financed, and private management appears to be more efficient.
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Asian Development Bank and UNICEF. (2011). Non-State Providers and Public-Private Partnerships in Education for the Poor. Bangkok: UNICEF East Asia and Pacific Regional Office.
How can non-state providers of education and public private partnerships work most effectively for poor people in East Asia and the Pacific? This report highlights issues, opportunities and challenges related to non-state providers and their partnerships with the state in fulfilling the right to education for all. It argues that non-state providers present a significant resource for improving access and quality that the state should harness.
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Fall, M. et al. (2009). Reforming Urban Water Utilities in Western and Central Africa: Experiences with Public-Private Partnerships: Impact and Lessons Learned (Water Sector Board Discussion Paper Series, Number 13). Washington, D.C: World Bank.
What has been the impact of public-private partnerships (PPPs) on urban water quality and access in Central and Western Africa? This report examines fifteen countries throughout the region, analysing different models and drawing out lessons learned. It concludes that public-private partnerships have had a positive impact on access, reliability, and cost of water in Central and Western Africa and can provide useful examples for the implementation of such arrangements elsewhere.
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Harding, A. (2009). Partnerships with the Private Sector in Health: What the International Community Can Do to Strengthen Health Systems in Developing Countries – Final Report of the Private Sector Advisory Facility Working Group. Washington, D.C.: Center for Global Development.
Can and should the international community help developing-country governments engage with the private components of their health systems? This report presents the findings of a working group hosted by the Center for Global Development (2008-2009) to examine this question. The working group examined the need for support in this area, and conducted interviews with a broad range of stakeholders to ascertain the demand for assistance and type of support desired. It recommends the creation of a global advisory facility to provide technical and implementation support to strengthen governments’ capacity to work with their private health sectors.
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