Public-Private Partnership - Essay Example

Public-Private Partnership Introduction Uneven conflict creates a wicked problem. This kind of problem is ambiguous, evolving, and involves diverse stakeholders. Effective solutions to a wicked problem require approaches that can generate reasonable outcomes in spite of flaws in strategies, capacities, and incentives (Rittel & Weber 1973). The inherent conflict of interests within a public-private partnership is an excellent example of a wicked problem. The growingly complex societal problems and processes have heightened the reliance of the public sector on private groups so as to attain its goals and accomplish its duties. These societal problems, as well as the inherent conflict of interests between the public and the private sector are typified by a great extent of wickedness. Wicked problems are those conflicting matters confronting the public sector that demand a consolidated partnership by public and private sectors. The civil society, industries, and governments are not capable of addressing these problems independently (Dewulf, Blanken, & Bult-Spiering 2012). This essay analyzes the assumption that the conflict of interests within public-private partnership (PPP) is a wicked problem. Public-Private Partnership: A Wicked Problem Keith Grint, exploring the social framework of leadership, defined a ‘wicked problem’ as follows (Grint 2007, p. 11): A wicked problem is complex, rather than just complicated, it is often intractable, there is no unilinear solution, moreover, there is no ‘stopping’ point, it is novel, any apparent ‘solution’ often generates other ‘problems,’ and there is no ‘right’ or ‘wrong’ answer, but there are better or worse alternatives. Wicked problems within public-private partnership are characterized as recurrent or persistent problems, often defined by indecision and conflict over interests or purposes that could influence the process of decision-making (Hodge & Greve 2005). According to Grint (2005), there are no simple solutions to these wicked problems confronted by PPP. Remarkable progress can be achieved in mitigating them, but they will not be totally eradicated. But the question is, why are PPP problems considered wicked problems? First of all, organizing or forming PPP is complex due to the challenge of bringing together the objective and interests of the numerous stakeholders— the private sector is composed of lenders, investors, and firms supplying operational and construction services; on the other hand, the private sector is made up of public officials developing and enforcing PPP guidelines, those acquiring the PPP, and the public or citizens who utilize the infrastructures that a PPP offers (Biggs & Helms 2007). Practically all of these stakeholders need to have essential knowledge of the monetary and policy matters, and how their role in the project is connected to and influenced by them. There is a clear agreement in the literature implying that the private sector performs some things excellently, the public sector other things. Theoretically, and ideally, PPP could unite the best of both worlds, but the question is, is this really happening in the actual world? All wicked problems are basically specific and unique. In other words, they are context-specific (Harris, Brown, & Russell 2012). The conflict of interests within PPP is context-specific. The public sector focuses on shared aims, management, and public interests. It is well-adjusted to public criticism, employment issues, “policy management, regulation, ensuring equity, preventing discrimination or exploitation, ensuring continuity and stability of services, and ensuring social cohesion (through the mixing of races and classes for example, in the public schools)” (Rosenau 2000, p. 218). In other words, the context of the public sector is directed at social responsibility. It possesses local awareness and familiarity with demanding and challenging populations. On the contrary, the private sector is believed to be innovative and self-motivated, providing “access to finance, knowledge of technologies, managerial efficiency, and entrepreneurial spirit” (Rosenau 2000, p. 218). It is more skilled at carrying out economic activities, designing and reproducing successful trials, and accomplishing technological/scientific/procedural or complex tasks. Numerous positive outcomes can be acquired from these dissimilarities in the sense that both the private and the public sectors have intersecting practices. Resourceful, skilled, competitive, and well-organized public service is essential to policy ethics and vital to the general public (Mascarenhas 2011). These principles are innate in the practice of impartial public service. Furthermore, a responsible and transparent private organization is the aim of the growing discipline of business ethics (Celluci 2011). So where is the wicked problem here? In actual fact, according to Dewulf and colleagues (2012), PPP is not completely clear-cut because business and policy ethics require responsibilities that are not totally identical. This is where the conflict of interests within PPP arises. The private and public sectors are founded on entirely dissimilar mechanisms. The wicked problem is to successfully control these mechanisms so that their conflicts or differences become synchronized. Wicked problems, such as this, do not have a simply identifiable cluster of possible solutions. Because wicked problems are context-specific so are the possible solutions to them. The commercial private sector has basic knowledge or skills in fields such as financial support, operating experts, technical specialization, and management. Therefore, one of the possible solutions is to take into consideration the weaknesses of the private sector. Where public groups would provide public services in spite of an unsuccessful project, a private group would be exposed to several market factors and the motivation to generate profit (Hodge & Greve 2005). Similarly, public agencies have their own weak points and strong points associated with public services. Forming PPPs is a method to exercise and resolve the issues of public sector services. However, they create two wicked problems of their own; these wicked problems stem both from the possible weak points of private sector services and from the effort to fit together private and public interests and objectives. The first wicked problem emanates from the inherent characteristic of a private sector organization, namely, being a profit generator. This will generate motivations that could be in conflict with those needed to provide public services. There will then consistently be a conflict at the core of PPP (Carter, Clegg, Kornberger, et al. 2011). This is one of the characteristics of a wicked problem, persistent or chronic. The conflict may arise in several ways. The private sector could be lured to cut down expenditures by reducing quality, particularly if it sees the public regulator or procurer as incapable of correctly determining quality. In addition, as regards reducing costs, it could aggravate employees’ contracts hence weakening their motivation to offer premium service (De Wit & Meyer 2010). Moreover, it could be exposed to the demands of shareholders, interested in maximizing their wealth, and thus it could be unwilling to embark on long-term development. Conclusion These wicked problems inherent in public-private partnership can be prevented but not completely eliminated. Rational decision-making processes are the traditional strategy within a leader’s range of capabilities, according to Keith Grint (2005). In instances where information is precise and adequate to facilitate prompt actions, this strategy is perfect. Nevertheless, there are numerous contemporary cases where the amount of information is more burdensome than useful, where promptness of decision is very important, and where diverse stakeholders take part in all aspects of the decision-making process. As illustrated in the discussion, public-private partnership is fraught with problems, mostly relating to their differences. Basically, the conflict of interests within PPPs is a wicked problem in that they comprise decisions that require human beings in certain economic, social, cultural, and political contexts. This implies that every effort the public and private sectors exert has an effect on the lives of many. References Biggs, S. & Helms, L 2007, The Practice of American Public Policymaking, M.E. Sharpe, New York. Carter, C., Clegg, S., Kornberger, M. et al 2011, Strategy: Theory and Practice, Sage Publications Ltd., London. Cellucci, T 2011, A Guide to Innovative Public-Private Partnerships: Utilizing the Resources of the Private Sector for the Public Good, Government Institutes, UK. De Wit, B. & Meyer, R 2010, Strategy Synthesis: Resolving Strategy Paradoxes to Create Competitive Advantage, Cengage Learning EMEA, Mason, OH. Dewulf, G., Blanken, A., & Bult-Spiering, M 2012, Strategic Issues in Public-Private Partnerships, John Wiley & Sons, New York. Grint, K 2005, Problems, problems, problems: The social construction of ‘leadership’, Human Relations, 58(11), 1467+ Grint, K 2007, Leadership, management and command: rethinking D-Day, Palgrave Macmillan, New York. Harris, J., Brown, V., & Russell, J 2012, Tackling Wicked Problems: Through the Tran disciplinary Imagination, Earthscan, UK. Hodge, G. & Greve, C 2005, The Challenge of Public-Private Partnerships: Learning from International Experience, Edward Elgar Publishing, London. Mascarenhas, O 2011, Business Transformation Strategies: The Strategic Leader as Innovation Manager, Sage Publications Ltd., London. Rittel, H. & Weber, M 1973, Dilemmas in a General Theory Planning, Policy Sciences, 4, 155-169. Rosenau, P 2000, Public-Private Policy Partnerships, MIT Press, Westwood, MA. Read More