Over the last few decades, our administration focuses on developing our economy where they can address the problem of poverty and of modernization on the Philippines. As our country is still developing and the government resources are limited, new ideas and strategies such as partnerships are needed. This highly evolved development strategy is nowadays termed as Public Private Partnerships (PPPs), is a cooperative venture between the public and private sectors in the provision of goods or services which is traditionally provided by the state (Ricote & Fabella, 2006). The public and private sectors have common goals and their partnership can take advantage of the separate strengths of each to achieve their objectives. On the Executive Summary of Proceedings about Public-Private Partnerships in the Social Sector they elaborated that the private sector exists to make a profit and applies market-based solutions to problems while the public sector attempts to ensure equity and access for citizens and redresses problems of market failure (Asian Development Bank Institute, 1999). On view of this program, there will be greater opportunities that will come in the future especially in developing our country economically. The program caters mainly to the needs of the public users and also it creates an environment where there will always be consistent growth. Many are still skeptical and in fear of the Private Public Partnerships. Mainly because of there is a conflict of interest between the public and private sector and also there is a chance of higher transaction cost due to its long term contract. An article entitled, For Mutual Benefit-the Advantages and Challenges of Public-Private Partnerships cited, the state, that often provides the fixed assets and even the financing for PPP is interested in improving the delivery of public goods and services; while on the other hand, private firms are concerned with enhancing profitability and the welfare of their stockholders (FTI Consulting, Inc., 2012). On this sample risk, it shows that both sectors have different objectives which create a negative impact on the status of nation’s social and economic health. In this partnership, the government and the public sector must work together to establish quality standards that will help both of them in the long run. Real partnerships will require joint planning and discussions and better specifications of the potential roles for each other is needed (Asian Development Bank Institute, 1999). Therefore; accountability, monitoring and transparency by both the public and private sector is really significant. On the conference in Tokyo, Dr. Patricia Craig (Asian Development Bank Institute, 1999) highlighted the urgency of solving some of the problems of the social sector today because of the intensifying pressures of population ageing and globalization on this sector. With the ever increasing population, greater expectations and demands from the society, our government is facing an increasing pressure to deliver new and improved services with only limited resources available. Thus, the private sectors who are much more knowledgeable in terms of market rules and the ability to deliver projects on time can greatly aid the government in providing the services to the public in a way that benefits the people and delivers economic development. Our country today experiences a so called ‘infrastructure deficit’, evidenced by congested roads, deteriorated schools, lack of facilities in the hospitals, poorly maintained transit and water treatment systems, and other infrastructure assets which are either non-existent or in urgent need of repair (United Nations Economic Commission for Europe, 2008). Because of the increasing shortage of government funds as evidenced by lack of facilities and manpower, our country critically requires a more serious look at the PPP option. With the help of the partnership program, the problems that our country is facing will...
Bibliography: Ricote, E. E., & Fabella, V. K. (2006). The Governance of Development in the Philippines and the Role of the European Union: Public-Private Partnerships in Infrastructure Finance(Focus on Education). Journal of Business, Education and law, 27-57.
June 24, 2014
Please join StudyMode to read the full document