Tag Archives: public private partnerships

Do contract characteristics impact on private investment in public-private partnerships? Evidence from China

Wang etalHuanming Wang, Bin Chen, Wei Xiong and Guangdong Wu

Over the past three decades, many developed and developing countries have witnessed the increasing provision of public goods and services through private firms. With the New Public Management movement, state monopolies in many infrastructure sectors have been relaxed and privatization has been utilized as an alternative way of delivering public services. Private-capital investment has been allowed to build, operate and maintain components of the infrastructure through various types of cooperation between the public and private sectors. As a result, public-private partnerships (PPPs) have become a prominent part of the local government landscape. Advocates have emphasized the advantages of private investment in PPP infrastructure projects: enhanced efficiency, cost savings, improved effectiveness, better quality of services, and reduced government overheads.

Continue reading Do contract characteristics impact on private investment in public-private partnerships? Evidence from China

Profiting from Pain: social impact bonds and social policy

Meghan Joy_John ShieldsMeghan Joy and John Shields

Social Impact Bonds (SIBs) are a social policy tool that claims to solve complex policy problems, such as homelessness, unemployment, and recidivism, through the scientific methods of financial modelling. Actively supported by several governments worldwide, SIBs provide a mechanism to turn the risky behaviours of vulnerable individuals into a form of profit making for private impact investors. SIB projects target population groups, such as the homeless, troubled youth, and obese, whose problems result in costly use of emergency-oriented public services such as shelters, prisons, and hospitals. In this way, SIBs are positioned as preventative, allowing future savings on costly public programs. These savings, also known as impacts, outcomes, or results are measured for their social value created (Dowling & Harvie, 2014). The SIB instrument places a current price on anticipated social value based on the assessed future risk that participants will not be reformed. Risks become a reward as investors bet on the extent to which vulnerable people will be transformed.

Social Impact Bonds (SIBs) are a new tool in the arsenal of neoliberal capitalism that might best be seen as an extension of public-private partnerships into the realm of social policy. As part of the pay-for-success movement, SIBs marketize social policy in ways that empower venture capitalists to profit from the misfortunes of others. The solution to difficult social problems has been cast with SIBs as a profiting from pain model.

The aim of our recent article in Policy & Politics entitled Austerity in the Making: Reconfiguring Social Policy through Social Impact Bonds is to identify future avenues for empirical research on SIBs to further assess how the tool reconfigures social policy and with what consequences for democracy and equity. Continue reading Profiting from Pain: social impact bonds and social policy

The Immorality of Innovation – the Tale of Social Impact Bonds

meghan-joy-john-shieldsMeghan Joy and Dr. John Shields

In a post sub-prime mortgage induced financial crisis, another financial tool that risks increasing precarity for those most vulnerable is becoming increasingly popular in a political climate of austerity.

 

Social Impact Bonds (SIBs) are a social policy tool that claims to solve complex policy problems, such as homelessness, unemployment, and recidivism, through the scientific methods of financial modelling. Actively supported by several governments worldwide – there are currently 54 projects in 13 countries – SIBs provide a mechanism to turn the risky behaviours of vulnerable individuals into a form of profit making for private impact investors. SIB projects target population groups, such as the homeless, troubled youth, and obese, whose problems result in costly use of emergency-oriented public services such as shelters, prisons, and hospitals. In this way, SIBs are positioned as preventative, allowing future savings on costly public programs. These savings, also known as impacts, outcomes, or results are measured for their social value created (Dowling & Harvie, 2014). The SIB instrument places a current price on anticipated social value based on the assessed future risk that participants will not be reformed. Risks become a reward as investors bet on the extent to which vulnerable people will be transformed.

Continue reading The Immorality of Innovation – the Tale of Social Impact Bonds

Public–private partnerships, management capacity and public service efficiency

Tom Entwhistle and Rhys Andrews
Tom Entwhistle and Rhys Andrews

By Tom Entwistle and Rhys Andrews

Caught between falling tax revenues and increasing expenditures, governments across the world are looking for new ways of extracting economy and efficiency from the public sector. As in the past, the claim that business can deliver public services more efficiently than the state, provides a key inspiration for reform.

Governments can engage the private sector in public service delivery in a number of different ways. They can open clearly specified functions – like cleaning, refuse collection or grounds maintenance – to a competitive tendering process and then contract with the organisation which promises best value.  Alternatively, they may externalise – or, in more loaded terms, ‘privatise’ – the delivery of a whole service, Continue reading Public–private partnerships, management capacity and public service efficiency