ABSTRACT
A public–private partnership is a formal complementary relationship between public and private entities to achieve a common objective. The formal partnership arrangement delineates each partner's roles and responsibilities, states the level of investment and risk of each partner, and describes how financial and non-financial benefits will be distributed between the partners. Although partnerships represent government “power sharing,” they also entail “risk shifting” from government to the private sector. The basic purpose of partnering is “to take advantage of the potential for all parties to gain greater benefit than they could on their own.” When public–private partnerships are created, the overall objective of the partnership is usually to increase jobs, to enhance the numbers of employers in a region, or to revitalize the physical assets of an urban area. This entry delineates various public strategies to achieve growth, privatization models, and future directions of public–private partnerships.
