Public-private partnership

A public-private partnership is a contract between the public sector, or government, and a private company. The purpose for such public-private partnerships is to provide public services, like education and transportation. This is without changing the private business into a government-operated service. One way of doing this is to allow the government to pay the business for providing free services to the public. The business provides the services for free and then charges the government for compensation, in which the government agrees. Supporters of public-private partnerships argue that it reduces inefficiency and provides the free market with greater flexibility.Public-Private Partnerships: Managing Risks and Opportunities, eds. Akintola Akintoye; Matthias Beck; Cliff Hardcastle (Chichester: John Wiley & Sons, 2008), p. xix

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Category:Economics