The Limitations of Public-Private Partnerships

Source: Marc Scribner, Competitive Enterprise Institute, January 2011

From the summary:
Government at all levels in the United States has been slowly moving away from grand central planning schemes and toward markets. One result has been the rise of public-private partnerships….Unfortunately, PPPs can also drive rent-seeking behavior, and create significant risk of improper collusion between political actors and politically preferred firms and industries. This harms not only taxpayers, but the economy at large, as critical investment decisions are distorted by political considerations. Such shady dealings also serve to delegitimize and discourage privatization efforts and commercial infrastructure investment in general.

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