Public–Private Partnerships and the Public Accountability Question

Public–private partnerships (PPPs) are growing in popularity as a governing model for delivery of public goods and services. PPPs have existed since the Roman Empire, but their expansion into traditional public projects today raises serious questions about public accountability. This article examines public accountability and its application to government and private firms involved in PPPs. An analytical framework is proposed for assessing the extent to which PPPs provide (or will provide) goods and services consistent with public sector goals of effectiveness, efficiency, and equity. Six dimensions—risk, costs and benefits, political and social impacts, expertise, collaboration, and performance measurement—are incorporated into a model that assists public managers in improving partnerships’ public accountability.     

Getting the fundamentals wrong: woes of public–private partnerships in solid waste collection in three Ghanaian cities

Until over a decade ago, concerted efforts at involving private agents to deliver solid waste collection services did not feature in local government's (LG's) policies and practices in Ghana. The LGs had over the years directly delivered the services with their labour, materials and equipment. The purpose of entering into partnerships with private contractors was to improve service delivery. This comes at a time when the private sector is generally viewed as more efficient and effective than the public sector. There is abundant literature on potential benefits of private sector participation in public service delivery; yet, figures of efficiency gains are often accepted without challenge. More advantages but fewer disadvantages are cited and anecdotal evidence is used only to illustrate successful applications of the concept of public–private partnerships (PPPs). Using research data from three cities (Accra, Kumasi and Tema) in Ghana, this article exposes the contrast between policy expectations and outcomes of PPPs. The article argues that simply turning over public service delivery to private agents without ensuring that the fundamentals that make them successful are put in place leads to a worse situation than portrayed in literature about the benefit of PPPs. Copyright © 2004 John Wiley & Sons, Ltd.     

The Rise of Public–Private Partnerships in China: An Effective Financing Approach for Infrastructure Investment?

The rise of public‐private partnerships (PPPs) in China has spurred heated debates about their purpose and effectiveness. This article traces the fluctuation of China's PPPs over several decades and finds that PPPs have played a supplementary role in China's infrastructure investment, as a response to the pressures of fiscal shortfalls and government debts. The resurgence of PPPs in recent years aims to bridge the infrastructure gap and alleviate ballooning local debts. These expectations, however, are hard to realize. China's PPPs mainly involve state‐owned enterprises and place increasing financial burdens on the government. The central government has taken measures to attract private sector investment to mitigate the financial risk, but the prospects for PPPs remain unclear.     

Public–private partnerships and developing‐country agriculture: Evidence from the international agricultural research system

This study examines the role of public–private partnerships (PPPs) in promoting pro‐poor productivity‐enhancing technological innovation in the international agricultural research system. The study examines the extent to which PPPs are being used to overcome market and institutional failures that otherwise inhibit the development and dissemination of technologies targeted specifically to small‐scale, resource‐poor farmers in developing countries. Drawing on a survey of 75 PPP projects in the international system, findings suggest that while PPPs are changing the way the system manages its research agenda, few partnerships lead to joint innovation processes with the private sector. This indicates the need for closer examination of organizational practices, cultures, and incentives in the international agricultural research system. Copyright © 2010 John Wiley & Sons, Ltd.     

Goats or wolves? Private sector managers in the public sector

Public administration reforms have propagated the use of private sector management skills in the public sector, and an increased openness to managers with a private sector background. This has created a debate between those who think private sector experience improves public institutions by bringing core managerial values such as results orientation, efficiency, or openness to innovation, and those who argue that private sector experience can damage core public sector values, such as impartiality and equity. Despite the abundant anecdotal evidence, broad empirical evidence on the effects of private sector experience on public managers' values remains limited. Using data from a survey among central government top managers in 18 European countries, we show that public managers with private sector experience have, as expected, more core managerial values. Yet, unlike the conventional view, core public values do not suffer.     

Introduction: The State of State Employment

Public sector industrial relations is a somewhat neglected field of investigation. The relative neglect by industrial relations scholars is surprising given that public sector employees in Australia are much more likely to be unionised and work within larger organisations with formalised industrial. Moreover, it has been within public sector environments where the efficacy of public policy directions in industrial relations have been tested. Public sector environments are more likely to be characterised by structured bargaining and policy testing than much of the private sector. One of the purposes of this symposium, then, is to remedy this relative neglect of public sector industrial relations.     

Private Sector Imprinting: An Examination of the Impacts of Private Sector Job Experience on Public Manager's Work Attitudes

What are the attitudes of public managers who have had full‐time private sector work experience? Public managers with private sector work experience report different perspectives when compared to their counterparts who have spent their entire careers in the public sector. Though private sector work experience negatively correlates with job satisfaction, it only does so for the “new switcher,” whose last job was in the private sector. As careers advance, the negative impact seems to wane, leaving a public sector workforce that, in part as a result of their private sector work experience, are relatively more intrinsically motivated and involved in their jobs. We conclude with discussion of implications for human resources management.     

Public Values in Public–Private Partnerships

Although public–private partnerships (PPPs) are frequently analyzed and lauded in terms of efficiency, their impact on public values is often neglected. As a result, there is little empirical evidence supporting or rejecting the claim that PPPs have a negative effect on public values. This case study provides valuable insight into the relationship between public values in PPPs and the circumstances affecting the degree to which public values are upheld. Research findings demonstrate that whether public values are at stake in PPPs cannot be answered with a simple yes or no. Rather, public values can be threatened, safeguarded, or even strengthened depending on the project phase and the specific facet of the public value under scrutiny. Insight into which circumstances influence the safeguarding of public values in DBFMO (design–build–finance–maintain–operate) projects unravels the strengths and weaknesses of PPPs in terms of public values, providing public managers with a starting point for optimization.     

Unpacking the Path‐Dependent Process of Institutional Change for PPPs

In the recent past, several countries and states have begun to use Public‐Private‐Partnerships (PPPs) for infrastructure development and have attempted to create institutional environments that enable PPPs. Providing an enabling environment for PPPs entails a combination of institutional creation and changing existing institutions relating to project procurement. This paper attempts to understand how path‐dependant institutional change takes place in the context of PPPs and their enabling environments, and why different institutional environments evolve differently, using two cases: the implementation of PPPs in the road sector in the Netherlands and in the Indian state of Tamil Nadu. We identify two factors that can be used as predictors of the direction of institutional change: a long‐term orientation towards institutional change and a willingness to learn and modify transitional institutions. Where these factors exist, and thereby provide a goodness of fit, institutional change is likely to occur.     

Collaborative Innovation: A Viable Alternative to Market Competition and Organizational Entrepreneurship

There are growing pressures for the public sector to be more innovative but considerable disagreement about how to achieve it. This article uses institutional and organizational analysis to compare three major public innovation strategies. The article confronts the myth that the market‐driven private sector is more innovative than the public sector by showing that both sectors have a number of drivers of as well as barriers to innovation, some of which are similar, while others are sector specific. The article then systematically analyzes three strategies for innovation: New Public Management, which emphasizes market competition; the neo‐Weberian state, which emphasizes organizational entrepreneurship; and collaborative governance, which emphasizes multiactor engagement across organizations in the private, public, and nonprofit sectors. The authors conclude that the choice of strategies for enhancing public innovation is contingent rather than absolute. Some contingencies for each strategy are outlined.     

Public and private sector wages interactions in a general equilibrium model

It is common wisdom that public sector wages are not determined in the same way as private sector wages. At the same time, the empirical evidence available for OECD countries finds a strong positive correlation between public and private sector wages. In this paper, we develop a model that is consistent with a political economy view of the determination of public sector wages and employment, while being consistent with the said empirical evidence. Public finance constraints are crucial: In booms, governments expand employment and wages, while in downturns, lack of tax revenues forces the government to cut back the wage bill.     

The risky business of public–private partnerships

Public–private partnerships (PPPs) are now a common strand of third way government policy, with better efficiency promised from the private funding of public infrastructure through the transfer of risks to private parties. This paper aims to investigate, on an empirical basis, the realities of risk transfers in PPPs and compare this experience against both the rhetoric of project proponents and the formal contract conditions. The paper outlines some conceptual frameworks underpinning PPPs and establishes the notions of risk shifting and risk sharing. The range of typical risks encountered in infrastructure projects is specially considered, and differences to traditional project delivery arrangements are articulated. Some empirical experience on the transfer of risks under PPPs is then outlined through a case study. This analysis shows the extent to which risks were shifted to the private parties as planned, or whether risks remained with government. It is argued that while commercial risks were largely well managed, governance risks were not. It is critical to understand better the nature of risk transfers in PPPs in view of the large financial implications of these deals along with long contract terms.     

Enron/Andersen: Crisis in U.S. Accounting and Lessons for Government

Accounting and auditing play a key role in the belief of ordinary taxpayers and investors in their institutions. This is equally true of the private and governmental sectors. The Enron/Andersen scandal, regrettably, is not an isolated case, but rather merely indicative of underlying, structural flaws in our financial systems. Moreover, there is evidence that some of these flaws may be present in governmental accounting and auditing. The Sarbanes‐Oxley Act of 2002 is an attempt to address these problems in the private sector, but does not address concerns in the public sector. Public sector accounting issues that need to be addressed and monitored include substandard audit work and related liability issues, the appropriate funding of GASB so as to ensure its independence, auditor fees, and auditor independence questions including protection of elected and appointed state auditors.     

Person-Environment Fit and Public Service Motivation

This article incorporates insights from Person-Environment Fit theories to the discussion about the effect of Public Service Motivation (PSM) on vocational outcome variables. Analysis of a large Dutch dataset shows that workers with a PSM fit are more satisfied and less inclined to leave their job and the organization they work for than workers without such a fit. This is in accordance with the main hypothesis. Other results underline the importance of the PSM concept as they show that public sector workers have a higher level of PSM than private sector workers. Moreover, private sector workers with high levels of PSM are inclined to look for a job in the public sector, which is in accordance with a main propositions of the PSM framework. The article finishes with a discussion on theoretical and methodological issues raised by the analysis and puts forward some suggestions for further research.     

Public Sector Labor Relations Scholarship: Is There a “There,” There?

Public sector union membership is thriving compared to the private sector. Moreover, public employee unions play a significant role in policy making at every level of government. Yet research on public sector labor relations is sporadic and uneven, perhaps negligible. Why so? This article surveys the literature on public sector unionism and seeks to answer that question. Its conclusion points to a course of action for renewing interest in this seminal field among public administration, management, and policy scholars.     

International advocacy for contract-based public private partnerships through case studies: a re-interpretation of Southern Cross Station,Melbourne

In response to urban infrastructure deficits, international organisations, such as the United Nations, encourage governments to harness private finance. Contract-based Public Private Partnerships (PPPs) represent one policy option enabling infrastructure to be privately financed and constructed, and for service provision to occur. With PPPs also a contested policy option, private sector policy intermediaries advocate for their adoption, including through the selective promotion of case studies. In recognition that favourable case study narratives may leach out local context, a multi-dimensional analytical framework is introduced distinguishing between de-institutionalised, aspatial, non-historical, uncritical and non-futuristic perspectives. Recently the private sector-led World Economic Forum published ‘Harnessing Public-Private Cooperation to Deliver the New Urban Agenda’, which reported upon the PPP-led development of Spencer Street (or Southern Cross) Station in Melbourne, Australia. In deploying the framework, this paper concludes that case study narratives can be reductionist and locally detached in various ways. The role of policy intermediaries in the transfer of policy information therefore requires carefully interpretation, not least because of the malleable use of case studies to reveal desired conclusions.     

A Review of: “Exploring Positive Identities and Organizations: Building a Theoretical and Research Foundation edited by Laura Morgan Roberts and Jane E. Dutton”

ABSTRACT

Public service motivation (PSM) has been shown to be positively related to job satisfaction in the public sector, but there are two gaps in the literature. First, not only PSM but also pro-social motivation directed towards helping specific others (called user orientation) may affect job satisfaction. Second, the relationship between job satisfaction and these two types of pro-social motivation, PSM and user orientation, may also be found in the private sector. This study tests whether job satisfaction is associated with PSM and user orientation, and whether these associations differ between public and private employees. Using data from a survey of Danish employees (n = 2,811), we generally find positive relationships between the two types of pro-social motivation and job satisfaction, but the strength of the associations vary between occupations. The PSM–job satisfaction association does not differ significantly between the private and public sector, while the user orientation–job satisfaction association is strongest for private employees. This suggests that to understand the relationships between pro-social motivation, employment sector, and job satisfaction, future studies could fruitfully consider incorporating other types of pro-social motivation such as user orientation.     

Do Partners in PPPs view Public and Private Management Differently?

Differences between public and private management have been studied extensively by comparing sectors, but not within cross‐sectoral collaborative arrangements. As participants in such arrangements have actually experienced both management styles, examining their perceptions of how these styles differ may contribute innovatively to existing literature. This paper compares such perceptions between public and private sector project members (N = 63) involved in four PPPs in the Netherlands. We assess (1) to what extent and under which conditions these project members view public and private management differently and (2) how they evaluate these differences. By triangulating quantitative and qualitative interview data, we examine Boyne's classical hypotheses and find that more than two‐thirds of the statements making reference to these hypotheses offer support for them; more so, the vast majority of such statements evaluate sectoral differences negatively. Intriguingly, type of PPP is a stronger determinant of perceived differences than the manager's sector of origin.     

The present and future of public sector extension in Africa: contracting out or contracting in?

Public sector extension has come under increasing pressure to downsize and reform. Contracting out—the use of public sector funds to contract non‐governmental and private service providers—is often held up as a potential tool in reform efforts. Much has been written about the possible advantages of contracting out of agricultural extension and it is being encouraged and promoted by numerous international organizations. However, a look at field experience in Africa shows that contracting out is relatively infrequent, especially compared with the reverse—contracting in—where private sector and non‐governmental organizations finance public sector extension delivery. Case studies from Uganda and Mozambique indicate that on the ground attempts to come up with solutions to providing services to farmers are resulting in innovative contracting approaches and combined public and private institutional arrangements. Contracting in and public–private coalition approaches, in contrast to purely public sector extension (characterized by ineffectiveness and inefficiencies) and purely private for profit extension (which may ignore public goods and concerns), may help achieve extension services which are both demand led and which internalize public concerns such as environmental protection, food security and socio‐economic equity. These coalition approaches can be improved and facilitated. They deserve greater analysis and may contribute to a better understanding of extension contracting and the roles of private and public organizations. Copyright © 2000 John Wiley & Sons, Ltd.