Public-Private Partnerships and Corruption in Developing Countries

Demuijnck, Geert; Ngnodjom, Hubert

doi:10.5840/bpej2011303/412

Cited by 11 publications

(7 citation statements)

References 12 publications

(1 reference statement)

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“…Private investors cannot be motivated to invest in an environment, where PPP policy has not been well accepted politically. Generally, in developing countries, certain initiated PPP projects often receive stiff political opposition throughout its lifecycle possibly induced by allegations of corruption and lack of transparency (Demuijnck and Ngnodjom, 2011). Although such concerns may be relevant, opposition from the political front creates serious insecurity for private sector investments.…”

Section: Resultsmentioning

confidence: 99%

Factors attracting private sector investments in public–private partnerships in developing countries

Osei‐Kyei

Chan

2017

JFMPC

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Purpose The increasing demand for public infrastructure has caused a rise in the global adoption of the public–private partnership (PPP) concept. However, over the past years, most of the developing countries have failed to attract more private investments as realised in the developed countries. This paper aims to investigate the critical factors that attract private investments in the PPP markets of developing countries. Design/methodology/approach An empirical questionnaire survey was conducted with targeted international PPP experts from the academic and industrial sectors. The inter-rater agreement analysis, mean score ranking and Mann–Whitney U test were used to analyse the survey responses. Findings Results indicate that the three most critical factors are political support and acceptability for PPPs, government positive attitude towards private sector investments and political stability. On the other hand, factors including government guarantees, competent PPP unit and tax rebate on imported equipment are of low importance. The Mann–Whitney U test reveals that experts from the academic and industrial sectors view the importance of three factors differently: adequate public sector experience in PPP, government providing guarantees and government providing tax rebate on imported equipment. Originality/value The research outputs contribute to the existing but limited knowledge on PPP practices in developing countries by providing empirical evidence and cross-cultural perceptions on the conditions that are critical to the expansion of PPP markets in developing countries. It is therefore expected that governments and policymakers seeking to adopt the PPP concept would take into consideration the results and implications to enhance PPP growth.

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Section: Resultsmentioning

confidence: 99%

Factors attracting private sector investments in public–private partnerships in developing countries

Osei‐Kyei

Chan

2017

JFMPC

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“…In developing economies/countries, the acts of corruption have been identified as a major challenge in PPP project development, which is quite uncommon in the developed economies/countries (Demuijnck and Ngnodjom, 2011;Chan and Ameyaw, 2013). Corruption allegations incite public and political protests, which end up hindering the progress of PPP projects (Loxley, 2013).…”

Section: Literature Review On the Implementation Constraints In Pppmentioning

confidence: 99%

“…Essentially, considerable studies have been conducted to assess the barriers to successful PPP implementation; however, majority of these studies offered discussions which are country specific (Ismail and Haris, 2014;Demuijnck and Ngnodjom, 2011;Osei-Kyei and Chan, 2015b;Abdul-Aziz and Kassim, 2011;Cheung and Chan, 2011;Babatunde et al, 2015). Also, some have attempted to compare between developed economies/countries (Cheung et al, 2010;Chan et al, 2010a).…”

Section: Introductionmentioning

confidence: 99%

Implementation constraints in public-private partnership

Osei‐Kyei

Chan

2017

JFM

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Purpose This paper aims to empirically investigate the differences and similarities on the implementation constraints in public–private partnership (PPP) in developing and developed economies/countries, represented by Ghana and Hong Kong, respectively. Design/methodology/approach A questionnaire survey was conducted with relevant experienced PPP practitioners in Ghana and Hong Kong. One hundred and three completed questionnaires were received for analysis. Kendall’s coefficient of concordance analysis, mean score ranking, Mann–Whitney U test and quartile grouping were used for data analysis. Findings The results show six implementation constraints with significant differences. Constraints related to the general investment climate of PPP projects (i.e. ecological conditions of PPP) are ranked higher in Ghana than in Hong Kong, whereas constraints related to the organisation and negotiations of PPP projects are higher in Hong Kong than in Ghana. Further, two constraints, lengthy delay in finalising negotiations and lengthy delay due to political debate, are very critical in both jurisdictions, whereas “negative public perceptions on PPP transactions” and “high use of unsolicited proposals” are of less challenge in the implementation of PPP in both jurisdictions. Originality/value The findings of this study contribute to knowledge on the international best practices of PPP. In addition, international private bidders would be informed of the mitigation measures to adopt when engaging in PPP arrangements in any part of the world, whether in a developing or developed economy country.

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“…Private sector inclusion is discussed as a potential solution for the altering challenges of the public sector. This inclusion can take place in different guisesas full or partial privatization, or as joint projects in the form of public private partnerships (PPPs) between the public administration and private firms that ensure adequate control rights for the public sector over the crucial aspects of service provision (Demuijnck and Ngnodjom 2011;Marques and Berg 2011). PPPs constitute an "alternative to contracting out and privatization, and thus they are seen as a qualitative jump ahead in the effort to combine the strong sides of the public sector and the private sector" (Hodge and Greve 2007, p. 545).…”

Section: Public Private Partnershipsmentioning

confidence: 99%

Conceptualizing Corruption in Public Private Partnerships

Schomaker

2020

Public Organiz Rev

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This article conceptualizes the vulnerability of the different stages of Public-Private Partnership (PPP) models for corruption against the backdrop of contract theory, principal-agent theory and transaction cost economics, and discusses potential control mechanisms. The article's contribution to the debate on PPPs is twofold: first, an issue widely neglected by the pertinent literature is conceptualized. Second, as these PPPs are used not only in developed countries whose legal order may shield them sufficiently, but also in developing countries, carving out the vulnerable points in PPP arrangements may enable decision makers to install appropriate control mechanisms, if need be on project level.

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Public-Private Partnerships and Corruption in Developing Countries

Cited by 11 publications

References 12 publications

Factors attracting private sector investments in public–private partnerships in developing countries

Factors attracting private sector investments in public–private partnerships in developing countries

Implementation constraints in public-private partnership

Conceptualizing Corruption in Public Private Partnerships

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