Good and Bad Practices in Private Provision of Public Services
Are there examples of good and bad practice in private provision of public services? Find case studies of where private provision of public services has worked well, and other cases where major problems have occurred. Present one positive example and one negative example. It is based on public services of any kind.
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It strikes and draws concern where public services are provided by the private sector. In most cases, the privatisation of public services is meant to enhance quality, increase effectiveness and improve efficiency in the provision of such services. However, all the good intentions of privatising public services may not be achieved, and there is a negative side to it. Before engaging the private sector in offering public services, it is important to gauge the good and the bad, conduct a cost-benefit analysis and determine whether it is a worthwhile path to take. The services are provided in what is usually called public-private partnerships (PPPs).
There are the goods or benefits of taking the PPP route for any government. First, it gives governments access to finance. When a government is cash strapped and is looking to do a mega project, it can turn to the private sector to get financing. The other good part of PPPs is access to technology, people and skills. The private sector has immense access to technology and a considerable pool of talent and skills, which the government can use in these PPPs. A government's process of initiating change can be lengthy and tedious, delaying the implementation process of projects. The financing, technology, people, and skills help in implementing projects effectively and efficiently, all to the benefit of the people.
There is still more positives and merit tied to the private provision of public services. The government transfers risk provides investment opportunities, and allows business development. The risk that the government could have borne in case of any unforeseen project costs, delays, and emerging issues is transferred to the private institutions contracted to undertake the processes. For the businesses, it is an opportunity for investment and business growth in an area that the government could have taken charge and implemented. It improves the economic situation of a country.
Beyond the goods and merits of public-private partnerships, there are still bad practices and drawbacks that must be considered. One of the bad practices is the private institutions' inflation of the project costs. When fully mandated to undertake the projects, they have near-full control and may unnecessarily exaggerate the costs. Another bad practice in this area is that PPP project public sector payments obligations postponed for later can negatively reflect future public sector fiscal indicators. Therefore, the economic situation of a country may be compromised by the previous engagements with PPPs. The public services provided in the private sector can also be marred by irregularities and poor quality as the profit-makers seek a high turnover. Therefore, it is important to seal the loopholes of these anticipated drawbacks before any PPP is signed.
The good of public service being offered by private firms outdoes the bad practices in the sector. The people and the government are bound to gain, as the private sector has shown ruthless effectiveness in their service delivery in the past. In order to reduce the delays and challenges brought about by public sector bureaucracies, PPPs are a great way to engage in public service. The people who shape and outline the features of PPPs must always ensure that they are set up in a way to achieve the highest degree of efficacy in service delivery. Anything below exceptional should not be tolerated since the idea is to improve people's experiences in getting what they need from their governments.
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