The role of properly structured public-private partnerships in promoting economic development
| DOI | https://doi.org/10.1108/WJEMSD-07-2013-0039 |
| Published date | 14 April 2014 |
| Pages | 90-97 |
| Date | 14 April 2014 |
| Author | Michael Busler |
| Subject Matter | Strategy,Business ethics,Sustainability |
The role of properly structured
public-private partnerships in
promoting economic development
Michael Busler
William J. Hughes Center for Public Policy, Richard Stockton College,
Galloway, USA
Abstract
Purpose – The purpose of this paper is to find the characteristics that determine the success of
public-private partnerships (PPPs) in promoting economic development and specifically to determine
the long- and short-term public involvement.
Design/methodology/approach – A grounded theory approach is utilized, involving desk research
and a review of the current literature, as well as examining case studies. This reduction in data
collection was based on the availability of literature and case studies which can be assimilated to
develop theoretically justifiable conclusions.
Findings – In less-than-developed countries (LDC), the lack of private investment capital severely
hinders economic development. In developed countries it is often high risk factors and very large
capital investment that slows economic development. In both cases, an input from the public sector is
needed. The findings suggest that government involvement should be time limited, so that to achieve
long-term success, a public sector exit strategy should be formulated. The length of time for public
sector involvement varies but is generally longer in the LDC.
Research limitations/implications – While the current literature provides some conc lusions
regarding the effect of PPPs on economic development, there is a gap when examining the proper
structure particularly for developing countries.
Originality/value – While the current literature provides some conclusions regarding the
effect of PPPs on economic development, there is a gap when examining the proper structure.
This paper also provides some guidance for participants to determine the optimum length of
time that public involvement is needed. Both academics and practitioners should find this to be
valuable information.
Keywords Entrepreneurship, Sustainable development, Governance, Ethics, Social responsibility,
Public-private partnerships, Values, Finance, Joint ventures, Partnerships for development
Paper type Research paper
Introduction
Public-private partnerships (PPPs) are defined in many ways. According to Hodge and
Greve (2007) PPPs are defined as “cooperative institutional arrange ments between
public and private sectors”. They also note that there is not complete agreement
concerning the role that PPPs play in economic development. Some argue that PPPs
present a new method to handle infrastructure projects such as highways (Savas,
2000). Others note that PPPs involve a new paradigm for private involvement in
traditionally public projects (Linder, 1999). With regard to economic development,
PPPs may be more clearly defined. In order for economic development to occur, the
private sector must be able to grow. In order to accomplish this, firms need to be able to
accumulate the inputs necessary to produce output. The basic inputs are capital and
labour. In less-than-developed countries (LDC) labour is usually available. The problem
is the accumulation of capital. If capital can be provided by a public entity, then the
ingredients for growth will be present. Therefore, in this context, PPPs will be defined
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/2042-5961.htm
Received 30 July 2013
Revised 30 July 2013
Accepted 31 July 2013
World Journal of Entrepreneurship,
Management and Sustainable
Development
Vol. 10 No. 2, 2014
pp. 90-97
rEmeraldGroup PublishingLimited
2042-5961
DOI 10.1108/W JEMSD-07-2013-00 39
90
WJEMSD
10,2
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