Hohhot, China. September, 2010. I have decided to try an experiment where I publish portions of papers and essays I have prepared during my time in the MBA program, accompanied with photos that taken over the past few years. The name I’ve given to this 50% creative, 50% academic hodgepodge is: Photopaper. The first photopaper series will be selections from a term paper I recently wrote entitled “The Ebb and Tide of Big Brother Inc.”
One option for governments interested in having close ties with corporations that are aligned to national priorities is through a Public-Private Partnership (PPP). The government isn’t able to influence corporate governance much at this level, but there is a formal relationship between strategic firms and nations at this level. Kappelier (2010) noted the high rate of PPPs in the EU at over 1,400 between 1990 and 2010 with an estimated capital value of approximately €260 billion. There are some criticisms for PPP, with opponents claiming a risk of moral hazard, whereby firms could easily take unnecessarily high risks with government money, leaving taxpayers to foot the bill if the investments result in losses.In addition to PPPs, countries are often faced with directly supporting strategic industries.
Stay tuned for next week’s exciting installment: 1.2 Government Sponsored Industries!