PUBLIC PRIVATE SECTOR PARTNERSHIPS, PUBLIC FINANCE INITIATIVES OR PRIVATISATIONS – HOW BEST TO DEVELOP INFRASTRUCTURE AND PROMOTE ECONOMIC REFORM
Debate about how best to promote economic reform through infrastructure development illustrates the need for a concise theoretical foundation as to how, when and where policies that change underlying economic structures can be applied. This paper outlines such a model, which is based on the perception of gradations in the process of development, and that the introduction of new ownership structures, market mechanisms and financing techniques are not necessarily solutions without providing for changes in economic, societal and legal infrastructures. Often privatisation is advocated as a solution to a deterioration in the industry – for instance in the supply of electricity. However this paper points out the preconditions for privatisation, and suggests that PPPs should be considered as a halfway house where those preconditions are not present.