Public-Private Partnerships

Paper Summary:

The paper examines the development of the private sector in various countries and its impact on poverty, with special reference to the formal private sector. The paper discusses the role of individual, small and medium enterprises working in the large informal sector as engines of development. The paper focuses on the need for a pro-poor dimension in public-private partnerships (PPPs) with lessons from certain case studies. The paper then explores the limitations of the existing PPPs for service delivery in urban areas. Finally, the paper looks at the challenges lying ahead for PPPs in the water and sanitation sector in India in terms of involving the various stakeholders at the planning stage. The paper appends explanations of indexes used.

Outline:
Part-I: Formal Private Sector & Development: An International Perspective
Part-II: The Need for a Pro-Poor Dimension to PPPs: Some Examples
Part-III: Challenges for PPPs in India's Urban Infrastructure Development
Developing Inclusive Public-Private Partnerships in the Delivery of Water and Sanitation Services
The Potential Roles of Independent and Small-Scale Service Providers in Redefined PPPs
Hindrances
Conclusion

From the Paper:

"As per the FDI Confidence Index Survey conducted by A.T. Kearney in the year 2004, corporate investors now see macroeconomic and political risks as less threatening and perceive greater profit opportunities and reduced risk in the world's leading emerging markets. A fundamental shift in the outlook and perception is underway. At the turn of the century, the world is caught in powerful crosscurrents and many of the predominant trends manifest themselves in seemingly contradictory ways. For example, never before in human history has so much wealth been created so fast. Never before in human history have so many had it so good in terms of housing, food, comfort or use of new technologies. Today even in low-income countries large number of people have access to television, running water, electricity, healthy nourishment, vaccines and are better off than the middle-class of a century ago. Wealth is increasing -but so is inequality. Economic growth is rapid but poverty is persistent and misery endemic."

Sample of Sources Used:

• Human Development Report, 2006.
• UNESCO Institute for Statistics estimates, 2006.
• Transparency International Corruption Perception Index, 2006.
• Demographic Indicators (2005), UN Population Division, "Earth Trends Data Tables: Population, Health and Human Well-being".
• Income and Poverty (2005), UN Population Division, "Earth Trends Data Tables: Population, Health and Human Well-being".

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