What is the partnership of the public and private sectors?

The public and private sector partnership occurs when government agencies share resources and income with a NGO. These partnerships are used to meet specific specialized requirements and are legally binding. The types of projects that are ideal for public and private sector partnerships differ, but have four things common: unsatisfied need, income opportunity, shared responsibility and no clear government responsibility. In fact, this type of partnership has a very clear structure that defines the role of private society, government and final responsibility. All partnerships of the public and private sectors must be tested and approved at a higher level of management before they can start. A great example is the lighthouse. The benefits of the lighthouse are freely available to everyone and meets the real need in the community. No private company will build a lighthouse because there is no way to get costs. This is the role of government.

In the public and private sector partnership, the government is responsible for providing a specific service, but lacks technology, resources or political will to accommodate this need. If the market forces were able to deal with the customer's needs, a private company would be created. In scenarios where this is not the case, they both cooperate.

private companies exist to create a profit that requires a flow of income. The only projects that can be transformed into public and private sector partnerships are projects with a clear stream of income. A great example is a toll highway. It is the government's responsibility to provide roads, but they can create partnerships to reduce construction costs. Part of the income is focused on the company for a period of time.

The legal agreement that is necessary to create this type of partnership is strong and complex. The most important part of the agreement is to assign responsibility. This deals with the quality of processing, exceeding costs, natural disasters, shortcomings of income and other related problems. All these items have the ability to derail partnership and leave citizens with an unexpected account or an unfinished project. The popularity of these projects increases as a way to increase services with reduced costs.