Logikos
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- Feb 26, 2014
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Wakati tunapigia chepuo hii PPP's kwamba ndio magic wand nimeona nilete pdf hapa (report by David Hall) ambayo kwa hoja za mwandishi ni kwamba PPP's zimegubikwa na sintofahamu za kutosha na loopholes za Upigaji na kwa nchi kama yetu ya mafisadi huenda hii ikawa ni kuongezea watu mirija ya kulamba asali.....
jisomee ili tupate the other side of the debate
Dondoo zilizomo....
Although PPPs are often promoted as a solution for countries under fiscal constraints, the evidence suggests rather that they worsen fiscal problems. According to the EIB, the six countries which have made the greatest use of PPPs in recent years are Cyprus, Greece, Ireland, Portugal, Spain and the UK. Four of these are subject to ‘Troika’ rescue packages, and the other two – Spain and the UK – both face large fiscal problems. In both Portugal and Cyprus, the IMF/EU ‘troika’ packages have identified PPPs as a contributory cause of the countries’ fiscal problems, and required an audit and renegotiation of existing PPPs and a freeze on new PPPs. 11 (see case study) In Latin America, PPPs are also concentrated in very few countries. Brazil and Mexico account for 65 per cent of all PPPs; Colombia, Peru, and Chile account for a further 15 per cent.
A further danger is the recent effort by the World Bank,the G20, OECD and others to ‘financialize’ PPPs in order to access the trillions of dollars held by pension funds,insurance companies and other institutional investors.
PPPs originated as an accounting trick, a way round the government’s own constraints on public borrowing. This remains the overwhelming attraction for governments and international institutions. Just as companies like Enron had tried to conceal their true liabilities by moving them‘off-balance-sheet’, so governments started using PPPs as “tricks…. whereby public accounts imitate the creative accounting of some companies in the past.”
“In developing countries, the development banks and multinational companies encouraged the spread of PPPs in the 1990s, especially in the water and energy sectors, as part of the general promotion of privatisation – and as a way around the fiscal limits which the same IFIs were imposing on developing countries. The main form of privatisation in water was concessions or lease contracts, which are a classic form of PPP.”
Governments have also started providing subsidies for PPPs, mainly by lending public money at low rates of interest that the private sector could not otherwise obtain – despite the obvious intrinsic contradiction of using public finance to finance PPPs.
jisomee ili tupate the other side of the debate
Dondoo zilizomo....
Although PPPs are often promoted as a solution for countries under fiscal constraints, the evidence suggests rather that they worsen fiscal problems. According to the EIB, the six countries which have made the greatest use of PPPs in recent years are Cyprus, Greece, Ireland, Portugal, Spain and the UK. Four of these are subject to ‘Troika’ rescue packages, and the other two – Spain and the UK – both face large fiscal problems. In both Portugal and Cyprus, the IMF/EU ‘troika’ packages have identified PPPs as a contributory cause of the countries’ fiscal problems, and required an audit and renegotiation of existing PPPs and a freeze on new PPPs. 11 (see case study) In Latin America, PPPs are also concentrated in very few countries. Brazil and Mexico account for 65 per cent of all PPPs; Colombia, Peru, and Chile account for a further 15 per cent.
A further danger is the recent effort by the World Bank,the G20, OECD and others to ‘financialize’ PPPs in order to access the trillions of dollars held by pension funds,insurance companies and other institutional investors.
PPPs originated as an accounting trick, a way round the government’s own constraints on public borrowing. This remains the overwhelming attraction for governments and international institutions. Just as companies like Enron had tried to conceal their true liabilities by moving them‘off-balance-sheet’, so governments started using PPPs as “tricks…. whereby public accounts imitate the creative accounting of some companies in the past.”
“In developing countries, the development banks and multinational companies encouraged the spread of PPPs in the 1990s, especially in the water and energy sectors, as part of the general promotion of privatisation – and as a way around the fiscal limits which the same IFIs were imposing on developing countries. The main form of privatisation in water was concessions or lease contracts, which are a classic form of PPP.”
Governments have also started providing subsidies for PPPs, mainly by lending public money at low rates of interest that the private sector could not otherwise obtain – despite the obvious intrinsic contradiction of using public finance to finance PPPs.