Monday, May 2, 2011

Government-Industry Partnership—The PPP Way


The innumerable delays in public projects, corruption and red-tape blocking work, inability of private enterprises to reach all places or do things that hinders on a thin line between legal or illegal, and the overall success of work done in a cooperative manner (between private and government organizations) – are some of the reasons for the popularity of the PPP (private-public partnership) model.

In some sectors (development of airports and national infrastructure), the PPP model is working smoothly and have been instrumental in the success of some really tough projects (for example T3 at Indira Gandhi International Airport). In fact, it has brought about private sector participation in national development. Please check out http://www.pppinindia.com/reports-policy-documents.php for official reports on PPP in India.

Although it is been slowly used in the additional sectors like health and education, but I believe if the correct condition is created it can be adopted by all the sectors. This model is usually a win-win situation for the partners as well as for the consumers.

One place where I really want to see the model being rapidly adopted and really feel would work great is in the food security arena. In India, the problem is not really about food scarcity but food not reaching the people. So imagine the changes an effective PPP can bring in procurement, storage, distribution and transportation of food grains and other crucial stuff. This is one area where the public and private sector working together can bring in changes that the government alone would never be able to do.

In addition, I think we should go one step ahead from where we are. I personally feel that a PPPP (private-public-people partnership) model would be even more powerful. Right now the people involvement aspect seems like a missing piece. Adding that and appropriate usage of technology to make the model and its processes more transparent and efficiently would take it leagues ahead.

I would appreciate your thoughts/comments on this.

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