Public-Private Partnerships and Corruption in Developing Countries

Abstract

In this paper we evaluate the ethical aspects of a public-private partnership (PPP) for the production and distribution of electricity in a particular context, i.e., in a developing country characterized by a high corruption rate. In general, multi- national enterprises (MNE) are considered suspect in developing countries by their own populations and by others, especially in those countries perceived as corrupt. A second source of suspicion concerns the privatization of utilities: utilities such as electricity and clean water play an essential role in people’s lives, thus, leaving their production and distribution in the hands of for-profit companies may seem imprudent, particularly with respect to the poorest people. On the basis of a questionnaire submit- ted to managers of a privatized utility company in Cameroon, this case study suggests that the combination of these two sources of suspicion does not automatically lead to negative outcomes.