HUMAN WRONGS WATCH

Human Wrongs Watch

By Jomo Kwame Sundaram*

After the failure and abuses of privatization became apparent, public-private partnerships have since been promoted ostensibly to mobilize private finance for the public purpose. In all too many cases, PPPs have socialized costs and losses while ensuring private financial gains.

Jomo Kwame Sundaram

KUALA LUMPUR, Malaysia, May 21 2019 (IPS)* – After the failure and abuses of privatization and contracting-out services from the 1980s, there has been renewed appreciation for the role of the state or government.

Earlier promoters of privatization have taken a step backward, only to take two more forward to instead promote public-private partnerships (PPPs).

PPPs for most purposes

PPPs are essentially long-term contracts, underwritten by government guarantees, with which the private sector builds (and sometimes runs) major infrastructure projects or services traditionally provided by the state, such as hospitals, schools, roads, railways, water, sanitation and energy.