ABSTRACT
It could almost seem tautological to consider that Public–private partnerships (PPPs) contribute towards increasing the influence and power of finance. This chapter seeks to consider the heuristic dimension of the connection between the promotional discourse and economic theorising of this 'necessity'. Politically tempting, the argument for using PPPs as an easy financial resource to satisfy social and economic needs is not well regarded by economists writing about PPPs. While the connection between the microeconomic theory of PPPs and the microeconomic analysis of the role of financiers in the arrangement is slightly forced, it is nonetheless worthwhile highlighting the points shared with microeconomic literature on company governance. For microeconomic theory, the financers' task of monitoring does not end with the signature of the contract: they continue to supervise over decisions related to project management and conserve the right to replace any defaulting subcontractor.
