Role of Public-Private Partnerships in Mixed Economies - Coursework Example

?Managing In a Mixed Economics Table of Contents Introduction 3 A Brief Overview of NATS Holdings Limited 4 Seminar Topic 5 Argument Concerning Public Services Need To Be More Innovative 5 Examples of the Innovative Practices and Issues Raised 7 Seminar Topic 2 10 Importance of Partnership Working In Public Service Delivery 10 Implications of Partnership Working for the Management of Services and the Skills Required of Managers 12 Conclusion 13 References 15 Introduction The perception of mixed economy is principally described as a financial system that comprises a mix of both collectivism and capitalism notions. Moreover, it has been apparently observed that this particular sort of financial system typically embraces an amalgamation of private financial freedom and centralised monetary planning along with governmental regulations. A broad assortment of government as well as private control can be viewed to be present in mixed economies reflecting the facets of both collectivism and capitalism thereon (Jain & Khanna, 2008). In relation to the mixed economies, it has been viewed that there pertain various nations throughout the globe that are recognised as either socialist or capitalist like Cuba and the United States among others. In this similar concern, a capitalist system is primarily based upon personal profits, private ownerships, labours and investments. On the contrary, a socialist arrangement typically involves the financial activities that are regulated as well as controlled publicly by the active engagement of planning councils along with different governmental bodies (Brown, 1988). After acquiring a brief idea about the conception of mixed economy, it is to be stated that certain crucial inconsistencies have been prevailing in the modern day context. In this regard, one the critical inconsistencies can be recognised to be the permanence along with the development of Public-Private Partnership (PPP). With this concern, the conception of PPP is fundamentally described as a structure or an arrangement that occurs between a particular government or statutory entity and a specific private sector (Dept of Economic Affairs, 2011). It has been apparently observed that the governments belonging to diverse nations intend to form PPP dealing with various private based organisations belonging to mixed economies for the purpose of availing significant benefits. These benefits might include generating greater monetary value, delivering different sorts of projects in an effective as well as timely manner, effectively exploiting the state assets and resources, generating diversity along with innovation especially in the stipulation of public services (RPA, 2008). Furthermore, the other benefits that can be availed from establishing PPP comprise accessing better finance towards private sectors, raising lucidity in the operational procedures while undertaking any sort of project and most vitally delivering superior infrastructure related solutions (Dept of Economic Affairs, 2011). With this concern, this paper intends to analyse a PPP with reference to the example of NATS Holdings Limited applying certain significant aspects grounded on the arguments revealing that pubic services need to be more innovative and the idea concerning partnership working has become much important, especially when concerning the deliverance of effective public services. A Brief Overview of NATS Holdings Limited NATS Holdings Limited, which was previously acknowledged as National Air Traffic Services, is viewed as one the foremost service providers relating to air navigation in the United Kingdom (UK). The vision of the company has been to become a worldwide leader in the business segment of offering pioneering solutions linked with air-traffic and airport performance as well (NATS Limited, 2013). It has been apparently observed that the business market concerning the services relating to air-traffic is incessantly transforming due to extensive long-term growth in the sector of aviation both nationally and internationally. Thus, it is to be stated that the incessant transformation in the services associated with air-traffic, fundamentally due to long-term enlargement in the field of aviation, has eventually imposed greater pressure upon the prevailing airspace or airport infrastructures. Moreover, the above factor has also been reported to contribute effectively in making the amplification of such infrastructures more challenging in terms of rising competition and managerial complexities (NATS Limited, 2013). On the basis of the above discussion, it can be stated from a broader perspective that in order to mitigate the aforesaid rising problems or complexities, NATS decided to undertake a PPP approach in the year 1998. It has been viewed that the initiative concerning the PPP approach by NATS eventually supported the company towards restructuring its varied financial operations. It is worth mentioning that after the downturn of the aviation industry, in the post occurrence of the attack made on 11 September 2001 in the United States, the PPP approach became quite effectual for NATS. It can be affirmed that the prime intention of NATS behind undertaking a PPP approach is quite probable to lie in attaining several significant benefits in terms of financial matters. A few of the major benefits in this context might embrace the development of the financial position after experiencing financial downturn in the aviation industry, raising the existing market share, profitability and overall productivity by a greater extent (NATS Limited, 2013). Seminar Topic 1 Argument Concerning Public Services Need To Be More Innovative On the basis of these imperative functions that are generally perform by public services, it can be affirmed that public services could become a valuable factor in supporting the economies of diverse nations to raise their competitiveness by generating innovation-conducive settings. In this similar context, it has been viewed that several critical world challenges like security concerns, pollution and demographic transformations have played a vital role in generating new demands particularly for public services. In general, innovation can be related with the acquisition of commercial success and generation of substantial profits. However, relating to public services, innovation can take the form in terms of establishing a new procedure or practice, generating a fresh service or product or adopting along with executing a fresh outline of intra-organisational relationship approach. It has been viewed in this regard that the public sector often comprises a sort of composite open-system of organisations performing different valuable tasks. In this regard, it can be argued that the complex nature of the open-system of modern organisations might make the procedure of decision-making quite sluggish restricting the innovation of different public services by a greater level. Moreover, it can also be argued that the complex nature of management followed by organisations often generate a sort of ineffectual setting for the dispersal of innovation which eventually creates much problem towards developing the public services in an effective manner (Thenint, 2010). In order to determine that the public services require being more innovative, it can be stated that there pertain certain decisive factors, such as making the governments belonging to diverse nations take deliberate efforts concerning innovation of different public services. In this regard, few of the important factors comprise increased level of globalisation, formation as well as the execution of pioneering technical advancements, increased product choices availed by the customers, gaining momentum of internationalisation and extreme business market competition. Correspondingly, it has been apparently observed in this similar concern that there pertain certain crucial barriers towards making innovation, especially in public services. One of the unique barriers regarding innovation of public services has been identified to be the crisis in public finances (Bunt & et. al., 2010). In the similar context, the other barriers have been recognised to be focusing upon short-term targets or objectives, leadership failure, ineffective adoption along with execution of policies or courses relating to innovation, improper exploitation of the accessible resources and deviating employment provisions (APSC, n.d.). Owing to the mounting significance of innovative public services, it has been apparently observed that the governments of diverse nations have been undertaking the PPP approach in order to develop and thereby bring innovation in different public services. In this similar concern, it is to be stated that the approach of PPP has been viewed as a widespread instrument for the governments which strategically helps to innovate different public services by a certain degree. This can be justified with reference to the fact that the approach concerning PPP delivers innovative ideas along with inventive thinking which in turn broadly supports governmental strategies linked with innovation of public services and most significantly offers valuable framework to public organisations resulting in enhancing the lifestyle of the individuals or the people by a greater extent (Hartley, 2005). Examples of the Innovative Practices and Issues Raised The significant concern of innovation is viewed to be the generation of a new idea rather than employing any strategy. It has been apparently observed in this regard that innovation can be of several types that embrace product and/or service innovation, position innovation, procedure innovation, governance innovation and strategic along with rhetorical innovation. In the current day context, the factors like globalisation, extreme market competition and internationalisation have ultimately forced the different business organisations as well as the governments of dissimilar nations to apply innovative practices for availing significant benefits (Hartley, 2005). In this regard, NATS have been viewed to adopt as well as execute effective innovative practices for the purpose of developing its existing financial position and offering best services to its huge base of customers worldwide. For example, one of the innovative practices that was introduced and implemented by NATS has been recognised to be indulging in creating partnerships along with alliances with different service providers relating to air navigation of diverse foreign nations. In this regard, it has been viewed that the company took an initiative to establish UK/Ireland Functional Airspace Block (FAB) in the year 2008 for the purpose of generating a cost-effective as well as a seamless incorporation of business operations throughout its joint airspace. Moreover, it has also been noted in this similar concern that NATS preserves its efficiencies to operate as one of the members of the Borealis Alliance after agreeing upon a formal commercial alliance in the year 2012, with the intention of enhancing its financial position, lessening overall operational along with transaction costs, diminishing ecological impacts and most crucially, developing the technical as well as operational areas within its business (NATS Limited, 2013). Another example concerning the innovative practices that was introduced and executed by NATS has been viewed as its conduct of PPP. It is worth mentioning in this regard that the PPP approach for NATS was proposed in the year 1998 wherein the UK government had selected the company as one of the preferred partners in the year 2001. The prime intention of NATS to undertake this particular approach i.e. PPP had been to enhance its overall monetary situation or operational performance after the occurrence of the downturn in the aviation industry after the attack on 11th September 2001 in the US. In response, it has been viewed that the company had substantially invested nearly around ?130 million in order to lessen borrowings at large having split between the UK Government and the other privately-held firm named Heathrow Airport Holdings Limited. Contextually, it has been apparently observed that the PPP approach linked with the UK government and Heathrow ultimately supported NATS to further diminish its debt by a considerable level (NATS Limited, 2013). After acquiring a brief idea about the examples relating to innovative practices, it can be stated from a broader perspective that several critical issues can be raised by a greater level that might hinder the overall performance of NATS at large. In this similar concern, the issues can be raised in the form of affordability priorities and procurement obstructions among others. Relating to the case of NATS, it has been noted that the issue concerning infrastructure, growth and costs among others can raise significantly hindering the company’s efficiencies to maintain its conduct of innovative practices. From the perspective of infrastructure, the issue which is to be raised can be related to deal with maximising the investments in procuring costly infrastructure related assets. In relation to growth, the issue which is to be raised can be linked with facing a continuously rising number of restrictions that can be measured in terms of government policies, physical situation, complexities in the consultation procedures and environmental issues among others. From the standpoint of costs, the issue which is to be raised can be associated with experiencing rising costs while performing different operational functions (NATS Limited, 2013). These issues can again, largely impose unfavourable impacts upon developing the overall performance of NATS over its long-run performance. Seminar Topic 2 Importance of Partnership Working In Public Service Delivery With regard to determine the reasons owing to which partnership working has become so important in delivering effectual public service, it is to be stated that a significant portion of people belonging to this modern world are still living in scarcity fundamentally due to the inefficiencies underlying the currently rendered public services. Moreover, it has viewed that the people are also witnessing limitations in obtaining better access towards acquiring the services like secure sanitation, clean water and effective disposal of wastes among others. It is therefore the responsibility of the respective governments of diverse nations to adopt as well as to execute effective business strategies for the purpose of mitigating the aforementioned problem. In this regard, the significant concern of partnership working seems to be much vital for delivering effective public services. This can be justified with reference to the fact that the notion of partnership working intends to endow with operational along with strategic guidance’s especially to the respective governments, cities and most vitally, local as well as international organisations concerning how to enhance infrastructure delivery effectively. Hence, the facet of partnership working becomes quite significant particularly when linked with public service delivery as it possess the capability to introduce as well as to establish effectual performance enhancement activities as well as work-based and problem-solving programs that are exclusively designed for the organisations associated with infrastructure delivery (Kinder & Wright, 2009). In order to determine the increasing importance of partnership working concerning the delivery of public service, it has been apparently observed that the occurrence of worldwide recession or the financial downturn in the year 2009 has ultimately led towards lessening accessible resources for infrastructure advancement within the global aviation industry. This particular aspect has further been argued and analysed to have largely contributed in unfavourably affecting the deliverance of effectual public services. In response, the notion of partnership working becomes much important concerning effective deliverance of public services as it tends to define national development policies explicitly, with a procedure of executing them across the public sector. This particular facet of partnership working has also been argued to probably lead towards more effective deliverance of public services by a greater level. It has been apparently observed in this regard that the notion of partnership working possesses certain significant facets that can ultimately make the effectual execution of public services much important. In this regard, the facets concerning partnership working generally comprise leveraging, financing along with efficiencies linked with private sector, mitigating any sort of risks that are likely to emerge while conducting different operational functions and most vitally, when offering regulatory suggestions, especially to every PPP initiative. It is worth mentioning that the challenges relating to poverty alleviation, job creation and financial growth among others cannot be mitigated by the respective governments alone for which the formation as well as the execution of effective partnership working becomes much vital, particularly in the deliverance of effectual public services (Lombaard, 2012). Implications of Partnership Working for the Management of Services and the Skills Required of Managers Apart from the rising importance of partnership working particularly in delivering effective public services, the implications of the approach can also be observed for the management of services and the skills required of managers by a considerable level. From the viewpoint of the management of services, the implications of partnership working can be assessed by taking into concern certain basic approaches. It has been apparently observed in this similar concern that the idea concerning partnership working possesses the capability of organising as well as handling a broad array of management services that dynamically addresses the requirements of the organisations and every organisational member belonging to the managerial levels. Moreover, it has been viewed that the significant concern of partnership working also performs a vital function of more comfortably executing the accessible resources through proper management of individuals in a cost-effective manner. To be mentioned, the key principles underlying the partnership working also impose vital implications, especially upon the management of services. In this similar concern, the different chief principles relating to partnership working have been viewed to be openness, honesty amid the partners belonging to public as well as private enterprise as well as trust through the formation of regular communication between the involved partners. Thus, on the basis of the above discussion, it can be stated that the facets along with the principles associated with partnership working eventually makes the management of services to perform better and most significantly, to fulfil the individual requirements of the organisational members in a more comfortable manner (Hunter & et.al., 2011). It is to be stated that the idea concerning partnership working also has certain vital implications particularly on determining the skills required of managers apart from management of services. This can be justified with reference to the fact that the notion of partnership working develops a superior comprehension of the skills belonging to others along with advancing a broad assortment of personal skills in order to transact with the clients effectively. Most importantly, it has been viewed that idea concerning partnership working develops a broader skill base for the purpose of fulfilling the requirements of the individuals by a greater level. Furthermore, the idea of partnership working identifies as well as exploits the strengths along with the expertise areas of the involved partner agencies by a greater extent. These particular facets of partnership working ultimately develops the skills required of the managers to be much competent resulting in raising along with enhancing the overall organisational performance in the short as well as in the long run (Hunter & et.al., 2011). Conclusion The approach concerning PPP plays a decisive role in developing economies belonging to diverse nations. It has been apparently observed in this regard that certain crucial factors like globalisation, extreme business market competition and internationalisation have ultimately urged the importance of conducting the PPP approach by a significant level. It has been often argued in this regard that public services require becoming more innovative for the purpose of developing the lifestyle of the individuals or the people belonging to this contemporary world and most vitally, to enhance the economies of dissimilar nations. One of the innovative practices that have been viewed to be adopted as well as executed by NATS is conducting the PPP approach with the motive of enhancing its financial position after experiencing financial downturn especially in the aviation industry. It has been viewed in this regard that the significant concern of partnership working has become much significant in delivering effectual public services. This is owing to the reason that it provides effective guidelines to the respective governments concerning how infrastructure delivery would be enhanced for developing the lives of the individuals in this contemporary scenario. However, it has often been argued that the idea of partnership working imposes certain significant implications particularly upon the management of services and skills required by managers to a greater extent. Thus, from the overall analysis, it can be concluded that both the ideas i.e. PPP and partnership working plays an imperative role in developing the economies and most significantly enhancing the living standard of the individuals at the community level at large. References APSC, No Date. Barriers to Innovation. Archived Publications. Brown, D., 1988. Towards a Radical Democracy: the Political Economy of the Budapest School. Routledge. Bunt, L. & et. al., 2010. Schumpeter Comes To Whitehall. Discussion Paper, pp. 1-65. Dept of Economic Affairs, 2011. Defining Public Private Partnerships. National PPP Policy 2011 - Draft for Consultation. Dept of Economic Affairs, 2011. Why use PPP? Overview of PPP in Infrastructure. Hartley, J., 2005. Innovation in Public Services: An Historical Perspective. Innovation in Governance and Public Services: Past and Present, pp. 27-34. Hunter, D. J. & et. al., 2011. Partnership Working and Public Health. Partnership Working and the Implications for Governance: Issues Affecting Public Health Partnerships, pp. 1-148. Jain, T. R. & Khanna, O. P., 2008. Business Economics. FK Publications. Kinder, C. & Wright, D., 2009. Introduction. Better Public Service Delivery through Public-Private Partnerships, pp. 1-19. Lombaard, L., 2012. Public Private Partnerships Enhance Service Delivery. Special Reports. NATS Limited, 2013. Vision & Strategy. About Us. [Online] Available at: http://www.nats.co.uk/about-us/vision-strategy/ [Accessed May 09, 2013]. NATS Limited, 2013. History. About Us. 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