Potential Impact On Ppp

Published Date: 02 Nov 2017

When the governing system does not fulfill these conditions we talk in terms of poor governance Corporate. Poor governance Corporate leads to increased political and social risk, institutional failure and rigidity and a deterioration in the capacity to cope with shared problems. Of course, governance systems should facilitate action and not create an obstacle to development. Getting the right balance is a source of constant debate and an ongoing process that will be continually changing over time.

Social analysts have shown that there is a strong causal relationship between better governance and Corporate better development outcomes such as higher per capita incomes, lower infant mortality and higher literacy.

Regional and national impact is enhanced by a stable and just social order founded on clear institutional rules and effective and equitable markets. Governance Corporate is thus essential to poverty reduction and can help the poor to help themselves by the justice rule. A poor governance privet corporation is a barrier to development and hurts the poor through both economic and non-economic channels, making them more vulnerable and unable to adapt to changes.

As a result, markets will be weak and distorted thus holding back growth and employment opportunities. Structural and institutional reforms are needed to turn poor governance into more effective governance, including measures such as creating accountability in the use of public funds, building national capacity for better policy formulation, implementation, and enforcement mechanisms.

It includes converting decision-making and implementation into more inclusive processes where civil society and the private sector have clear roles to play with shared responsibilities on the basis of public-private partnerships.

The division of labor between the different actors and the sharing of responsibilities and balancing power relations are all part of the same process, that of defining the governing system.

To avoid all these kind of influence we see at the government be in partnership with private corporations to include owning stock in those corporations can be the suitable for such kind works.

The historical context of governance varies in time and space. In Europe and North America, for example, industry and capital investment backed by a strong State have been the dominant background forces that have shaped governance systems. However, the traditional bases of political power have been eroded in the last 20 years or so and the institutional strength of the State is being challenged.

Some recent changes in society have facilitated this weakening of the central State.

Some of these changes include:

Fiscal crises within the State (limitations on raising taxes).

Technological advances that facilitate networking and subsidiarity.

The globalization process, including deregulation of financial markets and volatility of capital, which restricts the State’s ability to govern/ control the economy.

A more assertive sub-national democracy in cities or semiautonomous regions.

Excessive workload and responsibilities on smaller government bureaucracies.

Large concentrations of people and political power in urban areas.

Hierarchical governance

Part of modernization is generally seen as the evolution of political systems from top-down, hierarchical government systems with centralized institutional settings, to more decentralized administrative forms and one of the important forms that’s the government be in partnership with private corporations to include owning stock in those corporations.

There is no evidence that more decentralized systems are necessarily more effective than centralized ones. The real test here is, "what works in the particular setting?" There is, however, a perceived ever-widening gap between those countries that have managed to move toward subsidiarity – or the performance of functions at the lowest effective level – and those that remain centralized and stagnant.

The forces for change listed above have an even greater impact in poorer countries as expectations rise for a better quality of life.

There is a growing dissatisfaction with ineffective but costly State machinery, lack of vision or leadership, weak financial discipline and political dictates crippling administrative functions. With respect to distributed governance, rich and poor countries are generally growing apart. More mechanisms exist in developed countries to establish the required new government be in partnership with private corporations to include owning stock systems than is the case in most of the less developed countries.

Partnership with private corporations to include owning stock in those corporations has regional and national influence to distribute the governance and the need to involve civil society and the private sector is promoted, the key role of government and public sector workers is recognized as critical for the proper stewardship of as a common resource.

Inference of regional and national impact

The main regional and national impact on the government be in partnership with private corporations to include owning stock in those corporations.

Sequencing

Institutions, laws, and management systems develop slowly and adapt to often rapidly changing environmental conditions.

It is important that countries tackle critical issues first and adopt a pragmatic approach accepting what is politically feasible rather than theoretically the best solution.

External environment

Government is in partnership with private corporations depends to a large extent on the underlying political and cultural conditions as well as economic factors and there is no one prescribed approach to governance that will work in all cases.

Simultaneity

The current rapid pace of economic, social, and environmental Change threatens to overwhelm the capacity of developing Countries to develop laws, institutions, etc. at a more measured Pace.

Liabilities (Katsenos, Christos)

Contingent liabilities

"Governments that use public-private partnerships to build infrastructure usually assume contingent liabilities relating, for example, to early contract termination and to debt and revenue guarantees. Deciding whether to assume these liabilities and, if so, working out how to value, monitor, and limit them is difficult for most governments". (Timothy Irwin and Tanya Mokdad, 2009)

Those governments that want to improve management of the above mentioned contingent liabilities which are linked with PPPs, will maybe have to apply some policies like multistage review of proposed PPPs by employees working for the ministry of finance (experts in PPPs and fiscal management).

On the other hand contingent liabilities may bring management issues for governments. They come always with a cost, which is unfortunately uncertain, so it is not easy to judge whether it is worth incurring. Moreover a contingent liability rarely requires approval on its budget or to be mentioned in the government’s financial statements. Thus a government may prefer contingent liabilities instead of other obligations. In the common case that PPPs cause contingent liabilities then there are several organizations that take action (e.g. IMF, the World Bank) to advice and to warn of the risks. At an early point a cautious ministry of finance may of course seek to avoid all contingent liabilities. At this point it should be mentioned that also management problems arise when the state has incurred a contingent liability. Because of that projects need to be monitored so that risks will be reduced if possible. At last all expenditures should be forecasted, even though that is difficult.

Management of liabilities

In order to manage contingent liabilities created by PPPs several sources of recommendations could be mentioned. An idea is that the rules followed by PPPs should make sure that the people with the given responsibilities have incentives, information, and the capability to consider the costs and risks of contingent liabilities. Some proposals could be the following:

Use of cost-benefit and value-for money analysis to choose from projects between PPPs and public finance.

Quantification of costs and risks of contingent liabilities.

Government or minister of finance should approve PPPs. The ministry of finance should also review the proposed PPPs.

Governments should take risks can be managed, meaning those that they can control or influence.

Adoption of modern standards for financial reporting, to reduce the temptation to use PPPs to evade fiscal issues.

PPP contracts along with information on the costs and risks of the financial obligation should be published.

There should be a reform in formation of budgets so that they can include potential liabilities.

A guarantee fund should be used.

Governments should charge fees for guarantees. (Timothy Irwin and Tanya Mokdad, 2009)

In order to manage well PPP-related contingent liabilities skills in finance and quantitative analysis are required along with good understanding of infrastructure projects. There are similarities between PPP-related contingent liabilities and financial guarantees. Some aspects of the management of financial guarantees have close connection to the management of PPP-related contingent liabilities.

Risk management

A risk management should be conducted in order to support the Group’s strategic and operational targets while protecting the company against loss, uncertainty, and lost opportunity. Risk management principles should be updated for each project to reflect the current status. Briefly they could be categorized as above:

"Risk management principles

Risk management is integrated into strategic decision making and management system.

Risk management is a proactive, ongoing and comprehensive process consolidated to cover all critical risks, but also business opportunities when feasible.

Risk management training and communications create a risk aware culture with focus on reaching business objectives." (Talvivaara, 2011)

Risk management will take into account all possible risks (environmental risks, occupational health and safety risks, and risks of damage, financial and economic risks, strategic and operational risks) in order to minimize the negative effects linked with the action of PPPs.

Inference for liabilities

Regarding possible liabilities it is clear that it is not an easy case to conduct a PPP especially in developing countries, where there are a lot of risks to be taken into account. Those governments should have to apply some policies like multistage review of proposed PPPs by employees working for the ministry of finance (experts in PPPs and fiscal management). They should try to perform an effective liabilities’ management. Towards this direction, people with the given responsibilities should have incentives, information, and the capability to consider the costs and risks of contingent liabilities.

Employment of PPP (Maulana, Aufi)

Privatization has not changed the structure inside labor relation. This labor which already privatized will always represented by the unions. Considering about the impact in world-wide, it seems various between countries to country especially if we talk about developing countries and developed countries. In some particular privatized company, the level of employment seems not affected but in the other hand, it has already increased or even has fallen. The trend in some of developed countries which has mature economy is more likely creating more jobs. But somehow, in developed countries where there are a lot of expansions in the infrastructure will result in against the job creation. Therefore, PPP is considered as good tools in job creation in some particular conditions. (PPP and its implications page 6)

PPPs are extensively implemented in many countries especially in developing countries. There are many reasons why this happen. In developing countries, having a big project such as transportation project such as free way or toll road or even in housing since the situation in developing countries always have a demands in housing sector. If the government do all of this projects himself, you can imagine how it will affect the economic sector. The government will spend too much money at the same time. This is not a good way to solve this matter. That is why they use PPPs by partnering with the private sector or the investor to deal with this condition. And of course, this will lead into each other advantages. Not only sharing risk but also sharing profit.

Impacts PPP on the employee in general

In other hand, PPPs could also improve the quality of the employees. In many case, the government will find the best partner in order to manage the project. Normally they will assign a good and competent company which has good employees by finding it from the portfolio or even an auction. As we know that PPPs is a two way relationship. From the government part, usually they put some of their men in the private company or in the opposite. In many good companies, most of them train the new employee therefore they will have a same vision and same mindset. And also, by partnering with the company, the men from the government will gain a lot of skills in managerial capacity or infrastructure provision. So in the end, this will improved the employee’s quality in both side. (Raymond E. Levitt, 2007)

It is not only increased the quality of the employee, but this also lead to the employee’s happiness. The public employee as the author mentioned before, will get many training as a new employee in the private side. Intuitively the employee will get a chance in increasing their career. This will be a good opportunity for them to gain much experience as they could. If they are willing to improved their career, this condition can lead them to see chances from two side, public and private part. Or even more if the public side can assure them about the company’s economic stability. If the happiness level of the employee is high, so the quality they give to the company also the best. This will create satisfaction in both sides. (National Presskit pp. 4)

In some particular cases it is possible that PPPs will to lead the job losses. These happen if public private partnerships take various forms ranging from management contracts, leases and concessions to full privatization. Virtually all of these processes have some impact on existing employees of local government who are currently providing the service that would be subjected to a PPP exercise. (PPPs and their Implication for jobs and Employment, pp. 3) Which means the employee from the government side will have a difficult position. If the requirements of from the private side are high and in the other hand it is not owned by the employee so they will replace this employee with a better one. This can happen because the private side holding more risks than the government. (PPPs and their implication for jobs and Employments, pp. 3)

In terms of management contract the private company has no role in financing the asset. And also the employees will managed by the contractor who has a power to hire and fire employees. There will be not so many changes in the terms of employment. Nevertheless, the working method is possible to change according to the management skill of the contractor. For an instance the contractor can finds that the job can be done by less people. This surely may cause deployment or even unemployment. Because manager always thinking of an efficiency. (PPPs and their implication for jobs and Employments, pp. 3)

Impact PPPs in different cases

In USA, the atmosphere among the PPPs employee began to not conducive since the 9/11 terror attacks. The federal anti-terror required the private sector to compare the list of the employees to the terror watch list. Even in 2004 there was a campaign that required the private sector participating to check their employee’s name against the federal terror. This has to be done in order to recover the situation in the USA itself. And of course this situation will not suitable creating a good atmosphere among the employee. (Morris, 2005 pp. 2)

In different case, a close partnership between the public (government) and private sector will affect the asset or the employee itself, in some particular condition. In USA, for an instance, after the terrorism happened in 2001, the private sector considered to conduct risk assessment to protect their key asset. This means that the private sector should secure their economic assets for shareholder, employees and the nation. In some condition, it is possible that the employee will feel in that they are not in a good situation. Especially for employee who are not an US citizen. (Morris, 2005 pp. 2)

In general, especially in Europe, PPP is considered as a vital source of employment in the Regional Innovation Strategy (RIS) of the European Union (EU). Moreover it is happened in small and medium-sized enterprises (SME) which where this rapid employment happens. Furthermore, compare to the big firms, SME is more affected while providing share of employment in an economy. (Tiwari, 2007, pp. 33)

PPP and employment in Finland

Talking about public support in private sector, in Finland, their government is supporting the private sector for exploration and mining since Finland has a stable society with low risk and also local people which are positive towards mining industry. Mining sector is one of important sector for the economy especially for rural area and low employment area. It has stated starting in 2008 that the Finnish government supports the mining industry. They intend to balance the influence of local communities and environmental impact issues since the impact on regional economy and employment are significant. (Finnish Mineral Policy: FEM, 2009)

In Finland, there was a different story concerning these PPPs which involving the government to own the stock in the private sector, Talvivaara company. According to Wikipedia, Finnish government owns 8.89% of Talvivaara. This situation also creates many kinds of opinion among the local people in Finland. (Wikipedia: Talvivaara Mining Company)

Despite the pros and contra about the Talvivaraa company, on the other hand Talvivaara company succeed in order to employs more employee. After improving co-operation with the local community it has been proved that after got permit in 2007, according to the Talvivaara annual report in 2007, increasing from 26 employees to 64 employees in the end of 2007. And in the following years they never stopped employs more workers. In 2010 they have already 461 workers. (Talvivara, 2007, pp.30)

C:\Documents and Settings\Tank\My Documents\My Pictures\Talvivaara Employment.bmp

Figure : Talvivaara's Employees (source: Talvivaara Minning Company Annual Report 2007)

In order to improve its long-term business situation, Talvivaara has tried to improve the co-operation with the local community. The company realized that their projects affect the environment which will make negative response from the local people. Therefore, by doing good co-operation with the society and local people it will lower the tension among them. And in the longer term, Talvivaara will do the pay back for the local communities by employ them in their projects. It might sounds political, but it is the fact that Talvivaara has increased their profit by expanding the works and gain more employees at the same time. (Talvivaara, 2011 pp. 44)

Inference of employment

PPPs in many case has proved to enhance the quality of the workers. Even though in some particular case this will lead out to job losses, but it has more positive effect to the worker. In some certain condition, since the government taken part as the closed partner with the private sector, this will support the employee to realize their position as the insider between them. Many opportunities will occur after the privatization. Even more challenging since normally the private company will replace a good contractor in order to lead the projects. The employee should be more competitive than before. At the end, if the project didn’t go well, the employee has already gained their quality as a worker in that project. Even more, if the government has their self-interest, their share, they will be more responsible and could assure the employee’s situation in building good working environment. And also the main reason to do the PPP is to develop the interest between these two sectors. And there are a lot of example of a success PPP happened in many countries which are lead to job creations.

Sustainability (Tegegn, Temesgen)

In this section of this paper it will be explained the essence of this very partnership between government/public and private sectors in ensuring sustainable development.

"We have no time to lose, and much to gain, in spreading the benefits of renewable energy far and wide.  We must find a more sustainable pathway to growth, one that provides for the needs of today while preserving the planet and its resources for future generations.’’

UN Secretary General Ban Ki-moon [online] Available at: http://www.un.org/News/Press/docs/2013/sgsm14759.doc.htm, Secretary-General SG/SM/14759 [accessed 15 January 2013].

It is a well-known fact that lately the idea of sustainability has been given lots of emphasis all around the world. Although its theoretical frame work has started to get awareness in 1970’s, sustainable development has been given a great deal of attention in the last twenty years.

Figure : Sustainable Development "Triple Win"

(Source: United Nations development Programme, triple wins for sustainable development, June 2012, P.5)

It can be seen that the concept of sustainability is quite vast and encompass lots of issues as socio economic, environmental and also political aspects with the dynamic linkage of all these concepts to each other. It is understood that creating a sustainable environment is the responsibility of everyone who is living in it so as to make it suitable for living and pass it in a better and more convenient way for the coming generation. A particular environment is meant to be sustainable if it can ensure the above stated facts for its inhabitants and this can be expressed in not only ensuring self‐sustaining developments (both economically and socially) among the community but also making sure of the manufacturing and production processes do not overexploit the natural resources and give a due care to the quality of the environment where they operate more over it gives the privilege that people have basic human rights and freedoms to participate in the all-round activities of the community in which they are residing.

For ensuring sustainability it is believed that apart from the Governmental institutions the private sector has also got an important role to play together with the community who actually is the one who is going to be benefited from a sustainable environment. As one of the major goals of governments is providing a comfortable and well suited environment in which citizens are to live in, practicing the principles of sustainability is believed to be main tool towards these goals of governments. Some governments have also started to integrate the concept of sustainability within their central policies.

Sustainability provides challenges for governments pursuing competing policy goals and balancing the interests of present and future generations. Engagement within and between government agencies helps to embed a culture of sustainability and improve the effectiveness and efficiency of policy and program delivery, reduce duplication of expenditure and improve sustainability outcomes. State, territory and local governments play a major role in delivering education for sustainability. (Australian Government Department of the Environment, Water, Heritage and the Arts, Living sustainability, 2009, P.13).

Sustainability, being one of the principles of corporate social responsibility has become organization’s concern in building an ethical behavior and concern for people and the environment have been shown to have a positive correlation with corporate performance of companies which not only helps in gaining benefit from the business from socially responsible behavior but also will greatly may ensure in building a very good image of the company within the community in which it operates (Corporate Social Responsibility; Crowther & Aras, 2008, P21)

It was stressed that the contribution of private sector for sustainable development is quite important by Ambassador Le Hoai Trung, Vietnam during Governments and business representatives discussion on the role of private sector for sustainability during UN Intercessional meeting in New York "The private sector should contribute to sustained economic growth, decent job creation, more sustainable production processes and technologies and enhance accountability, in particular regarding corporate social responsibility" (The guardian Thursday 12 April 2012 17.07 BST). Furthermore it was pointed out that the private sector especially the business sector around the world has incorporated the idea of sustainable development as one their prior agendas, realizing the mounting importance and urgency of the global environment, socio economic challenges by making use of innovative technologies for ensuing green growth thereby leading to substantial contribution to sustainable development (The guardian, The role of the private sector in sustainable development, Thursday 12 April 2012 17.07 BST).

As it is tried to show above both governments or public sector and private sector have got a very important role to play in ensuring sustainable development which actually is the best interest of the citizen. It can be understood that the special characteristics and qualities of each of these sectors can bring about a more effective and efficient out puts in the walk to achieve sustainability as citizens desperately need to live in a place which is economically and socially developed and also ecologically balanced. The Australian government stresses the importance of such partnerships of government and private sector stating the fact that such kind of Partnerships are a key feature of successful sustainability initiatives in such a way that these coalitions provide opportunities for learning and should be fostered within and between government, non-government, business, industry and other organizations. More over effective partnerships value diversity and the new perspectives and opportunities they provide (Australian Government Department of the Environment, Water, Heritage and the Arts, 2009, P13).

In this part of this paper it is believed to have a look at the experience of two countries (USA and Finland) where partnership between government/public and private sector gives a great deal of emphasis towards sustainable development in taking into consideration the best interest of the citizens whom they are serving. In this paper it will be tried to have two different perspectives on the case in question meaning that there will be one case where a company is established with direct coalition of government and private sector (Finland’s case) and a case where a joint venture is formed for one big particular project between public sector and private sectors in which parties agreed to share revenues, expenses and assets (USA’s case).

Case 1. Talvivaara Mining Company; Sotkamo, Finland

Talvivaara Mining Company PLC is Finnish based company that produces base metals with nickel and zinc being its primary focus and also copper and cobalt as byproducts of its mining operations. It is located in eastern part of Finland, Sotkamo. This company was established in 2004 when it acquired the right to mine the site. The Finnish state has equity of 8.9% of this company and the rest privately owned. Talvivaara therefore is one form of a public private partnership. As being the administrator and leader of the country and also having prime responsibilities in ensuring the safety and wellbeing of its citizens, the government has a great deal of influence in Talvivaara in creating a socially responsible company in conjunction with the its private partners. Infrastructure construction was carried out by the public partner. Due to the fact that the private sector now a day’s believed to have more of expertise and technology, it plays an important role in ensuring the sustainability through the production process of the company According to reports it was revealed that for the month of September 2012 odor emissions were largely addressed and also there were no complaints from the public more over by installation of new dust removal system dust emission were able to be addressed properly furthermore Talvivaara manages to decrease sulphate and sodium discharges and also a new leading technology is commissioned for reverse-osmosis based water treatment system (TALVIVAARA, TALVIVAARA Q3 2012 RESULTS, 8 NOVEMBER 2012,P.13).

In this company the collaboration of the two sectors is believed to bring about promising results in achieving sustainability. As per the reports it is showed that Talvivaara is also actively engaged in the development of new products and technologies that allow more efficient use of natural resources, materials and energy, and reduce the environmental impacts of mining operations there by enhancing sustainable environment. It was noted also that Talvivaara promotes sustainable development by providing its customers with high-quality products that improve energy and eco-efficiency. More over the involvement of public sector in this company makes it to be open and transparent when disclosing information on its operations and their impacts and also corporate reports are being produced with no biasness and in full honesty to enable the company to meet the growing expectations of its stakeholders (Talvivaara, Great challenges big improvements, annual report 2011, P.24).

Case 2 Chicago Lakeside Development project; Chicago, United States of America

This is a redevelopment project which has been carried out by the joint venture between United States Steel Corporation based in Pittsburgh (which is the public partner) and Mc Caffery Interests (the private partner). This project was approved in September 2010 and is estimated to take 25 to 45 years to fully reach its completion. According to Chicago Mayor Emanuel this project has aimed at creating a big sustainable, a well socially developed community on the southeast lakefront of Chicago which will provide huge economic impact in the area, in addition to helping to decrease unemployment in creating job and opportunity on the South Side and the importance of their long-term commitment in forming a well-balanced (Mc Caffery Interests, For immediate release, Oct 2012 P.1).

It is pointed out that by "Sustainia" the implementation of this project will reduce the water pollution and improve waste management due to the fact that each year 2.05 billion gallons of storm water and wastewater are sent from the Lake Michigan water basin to the Gulf of Mexico, and 85% of consumer waste in Illinois ends up in land fills (Sustainia, A guide to 100 sustainable solutions, 2012 P142). The whole master plan and concept of the development and also its sustainable strategies are presented by the private sector partner and firms under it and the public sector here play a role in taking a major step forward in September of 2010 when it gives $98 million tax increment funding grant that is going to be used to construct infrastructure for the development’s first phase (The New York times, Chicago to redevelop US steel site on Lake front, Robert Sharof, 28 Dec 2010).

Even though it has not been so long since it started this joint venture already begins to address the main pillars of a sustainability through minimizing the energy cost by changing the energy usage mix, by creating an accessible city with places to play, relax and exercise to the community it serves (addressing its social issues) and also by reducing water pollution and improve management of wastes. These special natures of this joint venture project made it won global sustainability award given by "Sustainia" global alliance of international partners (Sustainia, A guide to 100 sustainable solutions, 2012 P142; Mc Caffery Interests, for immediate release, Oct 2012 P.1).

Inference for Sustainability

As it has been pointed out above, it is believed that the public private partnership has got an important role to play to achieve sustainability. In both of the cases that were assessed it was witnessed that the parties involved has got their own special qualities which was directly reflected on the way a corporation or a particular project is being carried out giving proper response to ensure sustainable development. In such partnerships, it is quite obvious that the problem solving capacity will be much more powerful as there exists multidimensional and creative ways to face with the setback which are actually arise from the collaborated qualities of the parties’ partnered.

More over in happening of such partnerships there will be a technological and knowledge sharing which are basic tools to tackle the increasingly growing and dynamic sustainability matters within a particular community or country. All the above stated facts and analysis make it reasonable and more sensible that the capacity to address the issues in sustainable development is much more effective and efficient than it would have been if the parties were to run separately which makes this very partnership to have all the right ingredients that will lead to creat an environment which is economically strong, socially developed and also ecologically balanced which indeed align with the best interest of the citizens whom they are serving.

Conclusion (Ganguly, Turya)

The case study makes an honest effort in improving our outlook towards the issue of government stockholding in private organizations. These arguments strengthen those voices and opinions that claim Mussolini was right when he said: "Fascism should more properly be called corporatism since it is the merger of state and corporate power." In the mind of team Charlie, this statement is completely viable since in today’s world there has to be an understanding between the government (state or country) and the private (corporate) organizations. While private organizations often feel more flexible in their approach when they operate alone, it is very true that government involvement often provides the correct amount of stability and solidarity to the system. The extent of involvement, though, is very important and varies from country to country. The government often has control over the media and this helps in unnecessary publicity that may have adverse effect on the society in the long run. This kind of system also helps prevent monopolies and virtual takeover of the market by a sole player. Another advantage is the safety measures followed by the private organizations if kept under strict government vigilance. Government stockholding helps in creation of jobs in the market as well financing functions which often help bailout companies in dire circumstances. What’s more, the skillsets of employees as well sustainability is seen to improve in PPPs more than that in a private setup. Government stockholding also helps in providing transparency to the community as a whole and gives the citizens of the country with a clear picture of the situation. Moreover, the citizens feel much more relaxed if the promises to bring betterment to the society are made by the government, rather than a private organization. Though today communities still have a reservation against accepting the doctrines of fascism, it could easily be understood that though privatization is necessary, government stockholding helps bring changes and gives the organization a positive outlook which is often absent in a 100% privatized institution.