Public Private Partnerships (PPPs) summary paper

The summary of three reports on PPPs in Europe, including a critical overview, a study of alternatives, and a study on the protection of working conditions, in the context of EU law on procurement and other subjects.

Private equity and employment - the Davos/WEF/Harvard study

The World Economic Forum at Davos has published a major study showing that workplaces of firms taken over by private equity have 10% less employees 5 years after the takeover, than other similar workplaces. The rate of plant closures, opening, acquisitions and disposals is twice as high as in other firms, and the net effect is still a job loss of 3.6%-4.5% after only 2 years, compared with other firms. Firms taken over by private equity are also more likely to go bankrupt than publicly quoted firms.

A review of the rationales for corporate risk management: fashion or the need?

This paper presents the extensive literature survey based both on theoretical rationales for hedging as well as the empirical evidence that support the implications of the theory regarding the arguments for the corporate risk management relevance and its influence on the company’s value. The survey of literature presented in this paper has revealed that there are two chief classes of rationales for corporate decision to hedge - maximisation of shareholder value or maximisation of managers’ private utility. The paper concludes that, the total benefit of hedging is the combination of all these motives and, if the costs of using corporate risk management instruments are less than the benefits provided via the avenues mentioned in this paper, or any other benefit perceived by the market, then risk management is a shareholder-value enhancing activity.

More public rescues for more private finance failures - a critique of the EC Communication on PPPs

A critique of the EC Communication on PPPs, challenging the scale of state aid offered to PPPs, the role of PPPs in the economic recovery strategy for the EU, and drawing attention to the damage done to public authorities by 'innovative' financing mechanisms.

Public sector pay in the UK: has the historic pattern of public/private sector pay movements been broken?

The historic pattern of public sector pay movements in the UK has been counter-cyclical with private sector pay growth. Periods of relative decline in public sector pay against private sector movements have been followed by periods of ‘catch-up’ as Government controls are eased to remedy skill shortages or deal with industrial unrest among public servants. Public sector ‘catch up’ increases have therefore come at awkward times for Government, often coinciding with economic downturn in the private sector (Trinder 1994, White 1996, Bach 2002). Several such epochs of public sector pay policy can be identified since the 1970s. The question is whether the current limits on public sector pay being imposed by the UK Government fit this historic pattern or whether the pattern has been broken and, if so, how and why? This paper takes a historical approach in considering the context to public sector pay determination in the UK. In particular the paper seeks to review the period since Labour came into office (White and Hatchett 2003) and the various pay ‘modernisation’ exercises that have been in process over the last decade (White 2004). The paper draws on national statistics on public sector employment and pay levels to chart changes in public sector pay policy and draws on secondary literature to consider both Government policy intentions and the impact of these policies for public servants.

Replacing failed private water contracts

Failed private water concessions have been terminated and replaced with public sector operations in many countries. The paper reviews the negotiating processes involved in these terminations.

COVALENT LIPOPROTEIN(A) ASSEMBLY: Characterization of Oxidase Activity Responsible for Catalyzing Covalent Lipoprotein(a) Assembly

Lipoprotein(a) (Lp(a)) has been identified as an emerging risk factor for the development of vascular diseases. The Lp(a) particle is assembled in a 2-step process upon secretion of the LDL and apo(a) components from hepatocytes. Work done by the Koschinsky group has identified an oxidase-like activity present in the conditioned medium (CM) harvested from human hepatoma (HepG2), as well as HEK 293 (human endothelian kidney) cells that catalyzes the rate of covalent Lp(a) formation. We have taken a candidate enzyme approach to identifying this oxidase activity. Specifically, we have proposed that the QSOX (Quiescin/sulfhydryl oxidase) is responsible for catalysis of covalent Lp(a) assembly. An oxidase activity assay developed by Dr. Thorpe (University of Delaware) was used to detect QSOX1 in CM harvested from cultured cell lines that catalyze covalent Lp(a) assembly. In addition, the QSOX1 transcript was identified in each cell line and quantified with the use of Real-Time RT-PCR. Quantitative assays of covalent Lp(a) assembly were performed to study some characteristics of the unkwown oxidase activity. First, conditioned medium was dialyzed through a 5 kDa cutoff, as this has previously been shown to reduce the aforementioned oxidase activity. Purified QSOX was then added back to the reaction and the rate of catalysis was observed. The addition of QSOX appeared to enhance the rate of covalent Lp(a) assembly in a dose-dependent manner. Additional covalent Lp(a) assembly assays were performed where various chemicals were added to determine whether Lp(a) assembly was affected. The addition of EDTA did not affect covalent assembly, suggesting that the oxidase activity may not be metallo-dependent. Moreover, dose-dependent addition of Calcium, DTT, Copper and glutathione to dialyzed medium also did not affect the rate of Lp(a) assembly. Taken together, these studies will aid in identifying the nature of the oxidase activity that catalyzes covalent Lp(a) assembly. This will provide us with valuable information on how Lp(a) particles are assembled, and may lead to the development of drugs inhibiting Lp(a) formation.

Dispossessing bare life: Towards a theoretical framework for examining power relations through economic development at the 2010 FIFA World Cup in South Africa

In the past twenty years an increasing number of Global South nations have vied for the rights to host prestigious and expensive sport mega events. This trend requires significant reflection given the enormous economic costs of these events, which often produce little capital gain for the host nation (Whitson & Horne, 2006). Furthermore, sport mega events are often utilized for their symbolic capital (Belanger, 2009), which sometimes manifests through forcing people from their land for the sake of “beautification” (Davis, 2006). In this project, then, I asked how technologies of power were utilized by FIFA, corporate stakeholders, and the South African government to control people who were marginal to, or impeded the success of, the World Cup in Nelspruit, South Africa. This project consisted of two parts: the first involved constructing a theoretical framework for better understanding power as it operates through sport mega events in general. To this end I employed Marxian notions of the ordering of physical space, Foucauldian conceptions of sovereignty and governmentality, and Agamben’s (1998) state of exception to determine how particular bodies are constituted and controlled through sport mega events. In the second part, I applied this theoretical framework to the events in South Africa to better elucidate how people became displaced and killed because of the 2010 FIFA World Cup. I used South African popular news and documentaries as empirical evidence and conducted a discursive analysis of said news media. Through this coverage it became apparent that the mega event created the conditions in which new forms of rogue sovereign partnerships could arise through a historically and spatially contingent process of capitalism. The rogue sovereigns’ para-juridico-political orders, the discourses and practices of accumulation by dispossession as a tactic and effect of govermentality, and other historical non-capital subjectivities such as racial identity, all contributed to constituting Agamben’s state of exception in which people could be displaced, killed or left to die in the events surrounding the World Cup.

Estudio sobre la eficacia del régimen fiscal cooperativo portugués

El ordenamiento jurídico portugués consagra un régimen fiscal especial para el sector cooperativo, basado, al igual que otros ordenamientos como el español o el italiano, en la protección de la mutualidad como forma de organización empresarial especialmente benéfica en el plano social. Para alcanzar ese objetivo, el régimen fiscal cooperativo debe ser selectivo, lo que significa que al legislador se le plantea el reto de establecer criterios para separar, dentro del marco cooperativo, lo que debe ser protegido de lo que no merece protección fiscal. El legislador portugués optó por un modelo basado en dos grupos de ramos cooperativos claramente diferenciados según los beneficios fiscales aplicables, ambos con amplias exenciones fiscales. El presente trabajo no se centra en el contenido de los beneficios aplicables sino en las condiciones que las cooperativas deben reunir para acogerse a esos regímenes fiscales favorables. Estos criterios son: i) una división entre operaciones con socios y operaciones con terceros; ii) una delimitación de las operaciones o actividades cooperativas según estén o no vinculadas con el “fin propio de la cooperativa”; y iii) una estructura prevalentemente mutualista del factor trabajo. Esta fórmula legal tiene su raíz en una legislación de 1929 y se ha mantenido hasta el día de hoy debido en parte a un fenómeno de inercia legislativa. El presente trabajo, basándose en la metodología de la sociología jurídica, asienta en una encuesta dirigida a 64 cooperativas, por la que se buscaba indagar hasta qué punto estos criterios (de acuerdo con los que se seleccionan las cooperativas que pueden acogerse a los regímenes fiscales favorables) cuadran con la realidad cooperativa actual. Como era de esperar, la vetustez del régimen hizo que se encontraran desajustes muy significativos, que reclaman una reforma urgente.

Social economy and economic crisis in the basque country abstract

This article examines the socio-economic evolution of the social economy sector in the Basque Country during the 2008-2014 period of economic crisis. Data have been obtained within a framework of collaboration between university, Basque Government and private sector of the social economy. The results suggest that such entities have evolved better, both in terms of number of enterprises and employment, than the general economy of the Basque Country, while the context of public policies aimed at social economy has worsened over the years. However, in economic terms (measured through the Gross Value Added generated), they have not been able to cope with the crisis in equal conditions to the general economy. The main contribution of this research lies in that, unlike similar studies, it discusses the evolution of the whole sector of the social economy, taking as reference a broad period of the current economic crisis.

On the Sources of Private Information in FX Markets

We investigate the source of information advantage in inter-dealer FX trading using data on trades and counterparty identities. In liquid dollar exchange rates, information is concentrated among dealers that trade most frequently and specialize their activity in a particular rate. In cross-rates, traders that engage in triangular arbitrage are best informed. Better-informed traders are also located on larger trading floors. In cross-rates, the ability to forecast flows explains all of the advantage of the triangular arbitrageurs. In liquid dollar rates, specialist traders can forecast both order flow and the component of exchange rate changes that is uncorrelated with flow.

Research intensity and knowledge transfer activity in UK universities

As the innovation process has become more open and networked, Government policy in the UK has sought to promote both research excellence in the university sector and the translation of this into economic benefit through university–business engagement. However, this policy approach has tended to be applied uniformly with little account for organisational differences within the sector. In this paper we consider if differences between universities in their research performance is reflected in their knowledge transfer activity. Specifically, as universities develop a commercialization agenda are the strategic priorities for knowledge transfer, the organisational supports in place to facilitate knowledge transfer and the scale and scope of knowledge transfer activity different for high research intensive (HRI) and low research intensive (LRI) universities? The findings demonstrate that universities’ approach to knowledge transfer is shaped by institutional and organisational resources, in particular their ethos and research quality, rather than the capability to undertake knowledge transfer through a Technology Transfer Office (TTO). Strategic priorities for knowledge transfer are reflected in activity, in terms of the dominance of specific knowledge transfer channels, the partners with which universities engage and the geography of business engagement.

The Diffusion of Risks in Public Private Partnership Contracts

Purpose The UK government argues that the benefits of public private partnership (PPP) in delivering public infrastructure stem from: transferring risks to the private sector within a structure in which financiers put their own capital at risk; and, the performance based payment mechanism, reinforced by the due diligence requirements imposed by the lenders financing the projects (HM Treasury, 2010). Prior studies of risk in PPPs have investigated ‘what’ risks are allocated and to ‘whom’, that is to the public or the private sector. The purpose of this study is to examine ‘how’ and ‘why’ PPP risks are diffused by their financiers. Design/methodology/approach This study focuses on the financial structure of PPPs and on their financiers. Empirical evidence comes from interviews conducted with equity and debt financiers. Findings The findings show that the financial structure of the deals generates risk aversion in both debt and equity financiers and that the need to attract affordable finance leads to risk diffusion through a network of companies using various means that include contractual mitigation through insurance, performance support guarantees, interest rate swaps and inflation hedges. Because of the complexity this process generates, both procurers and suppliers need expensive expert advice. The risk aversion and diffusion and the consequent need for advice add cost to the projects impacting on the government’s economic argument for risk transfer. Limitations and implications The empirical work covers the private finance initiative (PFI) type of PPP arrangements and therefore the risk diffusion mechanisms may not be generalisable to other forms of PPP, especially those that do not involve the use of high leverage or private finance. Moreover, the scope of this research is limited to exploring the diffusion of risk in the private sector. Further research is needed on how risk is diffused in other settings and on the value for money implication of risk diffusion in PPP contracts. Originality/value The expectation inherent in PPP is that the private sector will better manage those risks allocated to it and because private capital is at risk, financiers will perform due diligence with the ultimate outcome that only viable projects will proceed. This paper presents empirical evidence that raises questions about these expectations. Key words: public private partnership, risk management, diffusion, private finance initiative, financiers