a)
Public Private
Partnership
b) Can PPP overcome the deficient supply of pure public and merit goods?
Ans :
Merit Goods include goods which are provided by both government and private sectors. They are goods
which
depend on product consumption directly. People using those need to pay for it, and they get exhausted too
often
due to high consumption. They are available for personal consumption and to only a certain section of the
society.
For example, the construction of buildings of hospitals and schools, and their maintainance.
Pure public goods on the other hand are meant to be provided to one all regardless of who pays for it.
They
are made available by the government to the common public and are meant for mass consumption. Examples may be
defence system, waste Management system, legal system, and street lighting.
PPP or 3P is responsible in incrementing the usage and availability of the pure public goods and merit
goods. The taxpayers pay for their construction, and the private actors, businessmen, corporate industrialists
invest in them, as a result the goods get available for all in no time, and the monetary expense for its
availability gets dealt with smoothly. Also since expenses gets managed by the big firm, the scope of
innovation
and efficiency improves. The provision of incentives improves competition.