Public Private Partnership are supposed to implement government’s development programmes. This leads to the availability of economic power, quality of work, and higher productivity. These words imply that private sector replaces with the public in doing the services that the government is supposed to provide. Public Private Partnership has positive effect on employee performance, skills, attitudes and morale. It also improves the economy growth of the country. On the other hand, the public funding is saved to facilitate the government to invest its money in other sectors of the economy.
By the way, in the developing countries, the government is lacking resources, knowledge and management of large scale production actions.
Public investment opportunity is available where the government is unable to do it alone in terms of financial weaknesses. In contrast with private sector’ management skills, involvement, and financial capacity of the private sector are much higher than the government. At this, public private partnership makes easier to make advances to economy sector.
The aim of the partnership is to reduce the costs that government sustains and to improve the productivity of the economy sector by operating with the experience and investment from the private sector. This shows that collaboration between the government and private sector can generate more profits than when the government is offering public services alone. Public Private Partnership in the production sector can respond to the needs of food security and protect the environment in the rural area.
High levels of investment are required to strengthen or develop opportunities for example in the agricultural sector in order to achieve sustainable development making it possible to get rid of the poverty. Therefore, the government of Somaliland should raise the budget allocated for the production sectors to increase local production.
Investors should also be facilitated to cooperate with the government in the agricultural sector to achieve our goal of self-sufficiency. All the necessary policies and legal framework for these activities should be in place before any interventions with the private sector is to be carried out. If adopted Public Private Partnership not only will raise the market for our products but the quality of our products and the economy of the sector.
However, Public private partnerships should be designed in a way that the two partners assign tasks and responsibility and also share the risks to minimize the damage. The combination of resources and capacities of both public and private partnerships must be managed through well-defined rules, regulations, policies and legal framework. The best option for the government is to enter into contract with private company as contract creates certain obligations that are to be fulfilled by the parties who entered into the agreement.
One should predict the risks that might have been associated with partnership and measures should be available to deal with violations of the contract. There must be a law and policy that addresses the collaboration between the partners. And that partners should implement partnership in accordance with the rules and regulations of the country. Anyone who violates the rules and regulations laid for the partnership programme must be dealt with the law.
Therefore, we need to reform our civil justice system to make on a par with the developing countries courts and only then both parties can trust with the system.
The above mentioned factors are the bases upon which partnership with the private sector can grow and develop.
Abdirahman Ibrahim Abdilahi