Public-Private
Partnership Term Paper:

Public-private partnership is a privately held company which is financed and supported by the partnership with the government and another privately held company.

This sort of partnership is often used in many countries and its idea is quite simple – when the government wants to embody its program or a reform in the certain sector, it can support the privately held companies which can be useful to carry out this reform. For example, when the government has decided to carry out the reform in transportation sector, it will choose a close corporation which manufactures the means of public transport – trains, trolleybuses, trams, etc. and invest into the mass production of their transport for the public needs. Of course, the government does not choose any company for this purpose, but pays attention to the quality of the production and its price which would not be a burden for the state budget.

Sometimes, public-private partnerships are criticized by the experts, because there are cases of corruption related with money laundering. It happens when the close corporation is owned by the close partner or relative of the politician – the official in the local or state administration.

The company receives much money for its work in spite of the fact that its production is of poor quality and its prices are too high. The most common examples of public-private partnerships occur in the sector of construction, transportation and medicine. The government makes the state order at a company offering construction services and builds hospitals, airports, plants, power stations, etc buying or renting these buildings from the hosting company.

Public–private partnership is the action of the financial support of the privately held company by the state for the performance of the public services. When the student has the duty to prepare a term paper about the problem of public-private partnership, he will need to explain to the reader the principle of work of the partnership, the advantages and disadvantages of this process, enumerate the most popular sectors of economy which are developed in this way, etc. The student has the chance to observe the problem of public-private partnership on the definite examples demonstrating the cases of corruption and other illegal actions in this sphere.

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