PFI, Public—Private Partnerships and the Neglected Importance of Process: Stakeholders and the Employment Dimension

Abstract

The prominence of Private Finance Initiative (PFI) and Public—Private Partnership (PPP) policy and practice is growing as a mechanism for improving resources available to, and value for money throughout, UK public services. This interest has not been accompanied by an appropriate level of academic scrutiny, nor by depth of insight into the impact of the PFI/PPP process upon public sector organizations. The authors draw on the experience of a National Health Service PFI project to examine key aspects of the PFI process, in particular, structural characteristics affecting design and implementation of PFI projects, financial and other organizational costs, and the nature of stakeholder involvement and the wider employment dimension. The article concludes by reflecting on implications for PFI/PPP policy, management and research.