In many countries, large infrastructure projects are increasingly funded and managed by private companies rather than governments. To what extent do you think this is a positive or negative development?
Pros
Fast-tracking of project initiation: private players can arrange money quickly
They can make modifications and also arrange extra resources in something goes missing during the project
Appropriate use of resources: manpower and material
Time bound project: professionals involved are not given an infinite timeline
These concerns are exposed to the threat of losses, they innovate and bring improvements
Cons
Since private companies invest for profits, their products are generally too expensive and beyond the reach of the masses
These entities also sometimes tend to follow malpractices and launch products without testing for their safety.
It is being observed that private participation in infrastructural development is usurping government-run endeavours. Although this might present certain challenges like exorbitant access fee, I vehemently feel that it is a favourable evolution owing to affording speed and efficiency.
This trend has rendered impetus and competence to undertakings aimed at the inception, expansion and enhancements of areas, and services, for public use. Privately-owned and run endeavours can be initiated quickly since the planning and funding of such activities do not need to pass through bureaucratic bottlenecks. For example, the redevelopment of harbour at the old port of San Francisco could not be completed even in 15 years, post senate approval, but Hyundai after taking over this assignment, finished the task within 3 years, and made the site operational in 2012, generating commerce and employment for the locals.
Similarly, involvement of private enterprise in such ventures precipitate innovation; these entities seek profits, and to maximise their earnings, they deploy state-of-the-art methods and equipment, alleviating wastage and pilferage, and multiplying yields alongwith/besides the quality of products and services. To corroborate, wherever mobile networks are in the private hands, outages are negligible and users receive excellent service.
However, those skeptical of this handover alleged that the venues and products laid at disposal by commercial entities might be unaffordable for a majority of consumers, especially the marginalized, because the prices and charges could be beyond reach. Nevertheless, these concerns can be addressed by lawmakers subsidizing such facilities for the poor.
In hindsight, the concerns about over-priced output because of privately-managed infrastructural undertakings can be negotiated through government funding, and let this pattern prevail and proliferate, by virtue of this being extremely rewarding not only in terms of founding new initiatives quickly but also ushering innovative techniques and concepts.
