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Public Private Partnership Model as Accelerator for Social Infrastructure Initiatives
Abstract
A well-developed social infrastructure can make a country a better place for everyone. It promotes high productivity and inclusive growth within society. A proper social infrastructure helps in eradicating deep-rooted inequalities associated with wealth, health, and living standards. Public private partnership (PPP) model is gaining worldwide popularity for building and financing infrastructure projects. In a fast growing but capital scarce economy, PPP is a viable alternative to public funding, by harnessing private sector efficiencies for infrastructure development which traditionally has been the government domain. Objectives of PPPs in very broad terms can be achieved through privatization, a practice more commonly followed in Latin American economies–with the government selling the assets or its controlling stake in its various development programs. In emerging Asian economies, a common practice has been allowing ‘market access' to private players to enter into hitherto closed markets.
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