Optimal development requires the harnessing of a country’s assets its capital, human and natural resources to meet demand from its population as comprehensively as possible. The public sectors by themselves, is imperfect in that it cannot meet all demands. Which interest groups are heeded or neglected will be determined by a combination of economic and political considerations. In particular, those whose voice and purchasing power are weak, and those whose interests are on long term goals rather than immediate needs, are more likely to be neglected.
A conducive environment need to be created for the private sector and NGOs to play an active role in implementation of the government social welfare Scheme, thereby becoming a partner of the government in development. The PPP model for the government social welfare schemes is usually sought to bring accountability and project’s objective achievement.
Various factors involved for private sector and NGO’s participation, are
- Factors of governance (encouraging public debate and consultation, and the right to organize interest groups)
- Regulations and the legal framework
- Incentives like taxation policies on income or local fund-raising, duties on imports, subsidies
- Collaboration like using private sector or NGOs in program/project implementation
- Involvement in policy-making by serving on committees, assisting with public consultations
- Direct expenditure, including official grants, contracts, etc.
