Why Use PPP for Developing Economies? Empirical Evidence from Turkish PPP Experience
DOI:
https://doi.org/10.5281/zenodo.17765385Keywords:
PPP, developing economy, Private Public Partnership, FDI, Foreign Direct InvestmentAbstract
Public-Private Partnerships (PPPs) have emerged as a critical mechanism for addressing the pervasive infrastructure gap in developing economies. This study explores the theoretical underpinnings and practical objectives driving the adoption of PPPs, while also critically examining the inherent complexities, governance challenges, and fiscal risks they entail. Drawing extensively from international references, particularly documents from the World Bank, European Bank for Reconstruction and Development (EBRD), and International Finance Corporation (IFC), the analysis provides an empirical deep dive into Türkiye's extensive PPP experience. Specific case studies from the healthcare (City Hospitals) and transport (Istanbul Airport, Osmangazi Bridge) sectors are meticulously analyzed to illustrate the successes, operational performance, fiscal implications, and social equity impacts. The article benchmarks Türkiye's experience against global examples, highlighting common pitfalls and emerging best practices. The findings reveal that while PPPs offer significant potential for leveraging private capital and expertise, their long-term sustainability and developmental impact are heavily contingent on robust governance frameworks, transparent risk allocation, and a clear focus on public welfare over short-term fiscal relief.
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