The Private Finance Initiative - Essay Example

Only on StudentShare

Extract of sample
The Private Finance Initiative

The basic premise behind the concept was to involve private players in service provision hence lessening the burden on the government. It was also meant to bring a touch of professionalism that is common in the private sector in provision of public services.
The entry of Britain in the European Union also played a significant role in the starting of this scheme. New EU laws put a cap on government expenditure resulting from both internal and external debt. These laws consequently put a major strain on government expenditure on public projects such as new schools, roads and hospitals. Technical experts therefore resulted to PFI in order to expedite the provision of essential public services.
In some circles the scheme was also known as the Private-Public partnership or simply the PPP. While the scheme was designed to ensure efficient provision of public services and reduce government borrowing from the public sector, it drew some criticism in some quarters. Some economic experts and political scientist pointed holes at the idea saying that it was a blatant display of government inefficiency. There was also fear that providers of these public services may be motivated by profits and end up providing mediocre services.
In public finance, the government provides public goods since unlike private players; it is not motivated by profits. ...Show more

Summary

The Private Finance Initiative is a concept that involves private entities financing the construction and maintenance of major public utilities such as roads, schools and hospitals. The investment by the private entity is then recouped albeit with an interest from the government or local authority that authorised the project…
Author : langoshcorine
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The Private Finance Initiative"
with a personal 20% discount.
Grab the best paper

Related Essays

Finance Master Essay
Their effects have a significant impact on global capital flows. R. Reagan's trade deficits (Galbraith 1992) pathed the way for further economic troubles shaking America today. G. Bush Jr.'s brutal medieval economic policies (Roberts 2006) deepened the economic abyss, into which the country is slowly falling.
6 pages (1500 words) Essay
Private Security Companies of Hostile Countries
The results of security operations and anti insurgency operations are presented and recommendations for the security companies for the operations in hostile regions like Iraq are given. The expatriate security companies from Western Countries in hostile areas like Iraq are a result of volatile situation that demands security for private organisations, government offices as well as public installations.
32 pages (8000 words) Coursework
Oslo Peace Initiative
Ever since the victory of the 'Six-day-war' or the War of Liberation in 1967, Israel's position became increasingly powerful in terms of self-defense and security. However, the joint effort of Arabs was defeated on all sides by Israel, and brought about a million Palestinian Arabs under the Israeli control (Isseroff, 2006).
6 pages (1500 words) Essay
Public Management Essay
They are the principal means by which a system of the government can achieve its collective purposes. But, political institutions also exert a formative effect on a regime. A community that seeks to govern itself through representatives must create a representative assembly, and in doing so the people give the assembly a particular character.
10 pages (2500 words) Essay
New Public Management Master Essay
This paper examines the concept of NPM and the impact of the political ideology in driving the reforms forward. This case study presents an overview of changes introduced as a result of this development and argues that the New Labour Government has not moved away from NPM, rather it has incorporated NPM concepts within a framework of modernization.
8 pages (2000 words) Essay
The mission of Arabian Gulf cooperation council
The Arabian Gulf Cooperation Council is the economic and political forum that coordinates policy making for at least six member states including the states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
4 pages (1000 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT