A number of developed countries and some other developing countries, are seeking for appropriate ways of establishing strong competitive positions at the international market place. The nature of competition at the international market place is changing from traditional as well as agricultural, to services and to the kind of other more comprehensive systems of manufacturing and also being value based industries.
Most of the organizations are now basically knowledge based, thus there is need for establishing more skills as the business production processes have expanded. Therefore, the key supporting factor of international competitiveness can be described as the competitiveness the public private partnerships, and in turn the service delivery systems. In most situations, the public private partnerships have emerged in the wake of successful service provision programs.
Most of the governments are seeking to establish ways in which they will reinvigorate the expansion of the public private partnerships. However most of the governments carry out the activities of the partnership agreements, within the settings in which such governments are faced with major challenges in relation to the economic situations, and the social establishments as well as the competing investment needs. As a result of these activities in the general environment, a number of routes to public private partnerships are being established and applied.
This research paper will make analysis on the public private partnerships, in relation to how they try to attain accountability as well as the public interest needs, and expectations in addition to the main policy aspects which relate to partnerships. Public private partnerships A number of analysts consider the ideas of contracting out as well as PPPs, as some kind of successive stages in the establishment of privatization deals of the services, which were initially made available by the state.
In this respect, privatization refers to the process of taking away the control of the public. In such situations, PPPs have been sought by the neo-liberal governments. The reason for such happenings is that the activities of selling off of the assets of the public as well as the contracting out of the various public assets have had a negative effect on the economic activities. The reason being the deals of establishing partnerships have been considered to be some forms of humane actions.
One of the emerging issues is whether they are any forms of substantive meaning, which can be considered to be different from that relating to privatization (Australia Dept. of Finance and Administration, 2005, pp, 21-96). Privatization is used in relation to PPPs to refer to a form of overall change of responsibility in the delivery of public services, from the side of the public sector to the side of the private sector, and in this sense the term does not have any form of normative content.
Therefore, the term privatization can be used to imply the selling off to the private sector those assets of the public. This also includes the activities of contracting out of the various public sector activities to the private sector. It is important that these differences are made clear so as to understand the subject of PPPs (Link, 2006, pp, 12-90). Contracting out The aspect of contracting out is different in a number of sections from that of PPPs, considering the fact that contracting out is not based on the ideas of partnership.
The concept of contracting out is used to refer to the arrangements which are made, whereby one party that is the contracting agency goes into a contract with the other party, who is the supplier from a outside that agency. This is intended to make available goods and services, which initially have been made available within the organization by not involving any other competitive bids. Contracting out is displayed in a number of forms such as competitive tendering, which involves the activities of selecting a supplier of choice from a variety of contractors.
This is done by looking out for the offers, and then analyzing the offers on the basis of a set of standards (Australia Dept. of Finance and Administration, 2005, pp, 21-96). There second form of contracting out is the compulsory competitive tendering, which involves the activities of competitive tendering of identified services or to an established level of expenditure. The third aspect of contracting out is the in house bid, which involves the activities of preparing a tender which is then presented by the internal agency staff and in situations.
Where the tender becomes successful, the staff of the organization preparing the tender will make available the required services on a contractual basis. Finally, there are service agreements contracting out arrangements, which involve the establishment of the contractual arrangements involving the government instrumentality and the other external service provider a party. The external service provider will be involved in the delivery of services at the price, which will be established in the contractual agreements (Grahovac, 2004, pp, 23-100). Public private partnerships
The term public private partnerships can be defined as the form of working relationships. This relationship seeks to encompass a high level of trust as well as close integration between two parties involved in the contractual arrangements, so as to attain mutually advantageous results. The term generally encompasses the activities of the collaborations between the government and the private actors. The partnerships usually take a number of organizational forms, which would be considered to be more or even less suitable for the various situations as well as projects.
One of the distinguishing factors for these organizational forms is the various responsibilities, which are accorded to the private sector partners. For example the Built Own Maintain form occurs in situations where the government manages to lease its facility, and still operate it by utilizing the potential of the public sector staff. This is made possible in the social infrastructure like those of the courts, hospitals and prisons among many others (Grahovac, 2004, pp, 23-100).
There is also the Build Own Operate Transfer, whereby the leased facility is returned to the government upon the maturity of the specified time period. The other form is the Build Own Operate, whereby the service provider has the discretion of retaining the ownership of the assets which are in perpetuity. In such cases the government establishes the suitable terms which will enable it to buy the assets within as specified period of time. There are also concessions, which arise in situations where the government takes ownership of the assets, which will then be funded and managed as well as maintained by the private sector.
The full ownership of the assets will revert to the government in situations where the agreed upon period has matured (Australia Dept. of Finance and Administration, 2005, pp, 21-96). New public management The concept of new public management has been derived from the theoretical influences, which relates to the establishment of contracting out as well as public private partnerships. It is therefore some sought of a new management paradigm, which takes the place of the old management paradigm which relates to public administration.
The model encompasses the changes in the focus made on the management systems, as well as the management efforts right from the inputs and the other processes to the resulting outputs. There are also the changes which are focused on the more measurement, demonstrating itself in the display of barriers of performance indicators as well as standards. On the other hand, the changes in the value priorities from collectivism, security and efficiency towards individualism are encompassed in the model as the expanding frontier is being focused on (Grahovac, 2004, pp, 23-100).