Skip to main content
SpringerLink
Log in

Heterodox Approach to Public-Private Partnership (PPP)

  • Chapter
  • First Online:
Public–Private Partnership for Sub-Saharan Africa

  • 298 Accesses

Abstract

By mainstream finance and Islamic Moral Economy, the author presents a new concept of cooperation between public and private entities. Can conventional private participation in infrastructure incorporate Islamic finance requirements? This chapter indicates the trade-off conditions under which public and private investors can reach their expectations of maximizing profit and social well-being in sync. Based on the observed socioeconomic trends, conventional–Islamic PPPs can enable the development of public services with a strong emphasis on social welfare.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Loughlin [1].

  2. 2.

    Owsiak [2].

  3. 3.

    Stiglitz [3].

  4. 4.

    Eatwell [4].

  5. 5.

    S. Owsiak, op. cit., p. 46.

  6. 6.

    www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1986/.

  7. 7.

    Buchanan [5].

  8. 8.

    Sadowski [6].

  9. 9.

    Visser [7].

  10. 10.

    W.R. Schumm, A.L. Kohler, Social cohesion and five pillars of Islam: a comparative perspective, American Journal of Islamic Social Sciences, 23(2), p. 128.

  11. 11.

    Karwowski [8].

  12. 12.

    www.encyklopedia.pwn.pl/haslo/ekonomia-muzulmanska;3897007.html.

  13. 13.

    Erdem [9].

  14. 14.

    Nejatullah Siddiqi [10].

  15. 15.

    Khoutem and Hichem [11].

  16. 16.

    H. Visser, op. cit., p. 122.

  17. 17.

    Karwowski [12].

  18. 18.

    Alexander [13].

  19. 19.

    Kabir and Lewis [14].

  20. 20.

    Eisenhardt [15].

  21. 21.

    Salanie [16].

  22. 22.

    According to Pareto, a situation is optimal only if no individuals can be made better off without making someone else worse off. The Pareto theorem identifies the well-being of a society with the well-being of its individual members. Such a position can be sustained, although there are such ethical systems where the society or certain groups thereof are given a moral dimension that differs from the one assigned to individuals. In such ethical systems, the Pareto criterion is at best considered to be inadequate or at worst treated as irrelevant. Is there, however, any system that would meet all of the criteria? The answer is provided by Arrow himself who formulated the so-called impossibility theorem. There is no system that would meet all of the Arrow’s axioms. There are, however, such systems that do not contradict these axioms but rather mitigate them [www.politykaglobalna.pl/2010/01/teoria-wyboru-publicznego-a-proces-podejmowania-decyzji-w-radzie-unii-europejskiej/2/].

  23. 23.

    H. Visser, op. cit., p. 139.

  24. 24.

    Piotrowski [17].

  25. 25.

    Wilkin [18].

  26. 26.

    Kociemska [19].

  27. 27.

    Tabash and Dhankar [20].

  28. 28.

    Adamek [21].

  29. 29.

    Quran [22].

  30. 30.

    www.noblisci.pl/1998-amartya-sen/.

  31. 31.

    M. Asutay, Yilmaz I., Istanbul 2015.

  32. 32.

    El-Awa [23].

  33. 33.

    Habib [24].

  34. 34.

    Arrow [25].

  35. 35.

    Usami and Qazi [26].

  36. 36.

    Al Qardawi [27].

  37. 37.

    Ethica Institute of Islamic Finance, Zakah Q&A Handbook, 2013, p. 6.

  38. 38.

    National Zakat Foundation, www.nzf.org.uk/Content/PDF/NZF_Zakat_Guide.pdf.

  39. 39.

    Kuran [28].

  40. 40.

    Le Menestrel [29].

  41. 41.

    Asutay and Yilmaz [30].

  42. 42.

    Kubiczek [31].

  43. 43.

    A. Sen 1987, p. 11.

  44. 44.

    www.kwinta.be/sites/default/files/bijlage/artikel/achieving-excellence-in-govt-service-adopting-efqm.pdf.

  45. 45.

    de Soto [32].

  46. 46.

    A. Horodecka, Instytucjonalizm i podejście instytucjonalne do polityki gospodarczej, www.instytut.info, p. 125.

  47. 47.

    www.heterodoxnews.com/directory/intro.htm z dnia 01.08.2016.

  48. 48.

    www.hetecon.net.

  49. 49.

    www.hetecon.net/?page=about&side=heterodox_economics.

  50. 50.

    Choudhury [33].

  51. 51.

    Choudhury and Bhatti [34].

  52. 52.

    Choudhury [35].

  53. 53.

    Ryner [36].

  54. 54.

    Levy Economics Institute, 2011.

  55. 55.

    Munoz [37].

  56. 56.

    Muñoz and Snowden [38], World Development 6(40), p. 1109 (pp. 1109–1121).

  57. 57.

    Caballero [39].

  58. 58.

    McKinnon and Pill [40].

  59. 59.

    Dornbusch [41].

References

  1. Loughlin M (2012) Foundations of public law. Oxford University Press, Oxford, p 420

    Google Scholar 

  2. Owsiak S (1999) Finanse publiczne. Teoria i praktyka, PWN, Warsaw, p 34

    Google Scholar 

  3. Stiglitz JE (1999) Economics of the public sector. W.W. Norton & Company, New York, p 6

    Google Scholar 

  4. Eatwell J (eds) (1899) Palgrave’s dictionary of political economy. Palgrave Macmillan, London, p 357

    Google Scholar 

  5. Buchanan J (1997) Finanse publiczne w warunkach demokracji. PWN, Warsaw

    Google Scholar 

  6. Sadowski M (2008) Elementy prawa cywilnego, ze szczególnym uwzględnieniem prawa własności, w świetle prawa islamskiego, In Kozerska E, Sadowski P, Szymański A (eds) Problemy własności w ujęciu historyczno-prawnym, pp 47–56

    Google Scholar 

  7. Visser H (2009) Islamic finance principles and practice. Edward Elgar, Northampton, p 11

    Google Scholar 

  8. Karwowski J (2012) Zakazy i nakazy w finansach islamskich, Studia Ekonomiczne, Science Notebooks, Wrocław University of Economics, no. 106, Yearbook 2012, p 91

    Google Scholar 

  9. Erdem E (2010) The functions of state in determining economic policies in islam tradition. Erciyes Univ J Econ Adm Sci 21–24

    Google Scholar 

  10. Nejatullah Siddiqi M (2006) Islamic banking and finance in theory and practice: a survey of state of the art. Islamic Econ Stud 13(2):4–6

    Google Scholar 

  11. Khoutem BJ, Hichem H (2014) Profit and losses sharing paradigm in Islamic banks: constraints or solutions for liquidity management? J Islamic Econ Banking Finan 10(3):30

    Google Scholar 

  12. Karwowski J (2011) Sukuk: islamskie certyfikaty inwestycyjne, In Finanse: nowe wyzwania teorii i praktyki. Rynki finansowe. red. K. Jajuga, Wrocław University of Economics, Wrocław, p 234

    Google Scholar 

  13. Alexander AJ (2011) Shifting title and risk: Islamic project finance with western partners. Mich J Int L 32:575

    Google Scholar 

  14. Kabir H, Lewis MK (eds) (2007) Handbook of islamic banking. Edward Elgar, Northampton, p 39

    Google Scholar 

  15. Eisenhardt KM (1989) Agency theory: an assessment and review. Acad Manag Rev 14(1):58 (57–74)

    Google Scholar 

  16. Salanie B (2005) The economics of contract: a prime, 2nd edn. MIT Press, Cambridge, p 119

    Google Scholar 

  17. Piotrowski D (2014) Zastosowanie podstawowej zasady finansów islamskich PLS celem ograniczenia zjawiska moralnego hazardu na rynku usług finansowych. Acta Universitatis Nicolai Copernici Pedagogica, Toruń, p 107

    Google Scholar 

  18. Wilkin J (2012) Teoria wyboru publicznego: Główne nurty i zastosowania. Scientific Publisher Scholar, Warsaw, p 11

    Google Scholar 

  19. Kociemska H (2015) Ryzyko w partnerstwie publiczno-prywatnym w teorii finansów publicznych i w praktyce. Scientific works of the Wrocław University of Economics, no. 404, Finanse samorządu terytorialnego, eds. L. Patrzałek, H. Kociemska, UE, Wrocław 2015, p 161

    Google Scholar 

  20. Tabash IM, Dhankar RS (2014) The relevance of Islamic finance principles in economic growth. Int J Emerging Res Manag Technol 3(2):52

    Google Scholar 

  21. Adamek J (2014) Mikrofinanse islamskie: założenia, produkty, praktyka. CeDeWu, Warsaw, p 53

    Google Scholar 

  22. Quran (2009) Sura II, verse 284, p 150

    Google Scholar 

  23. El-Awa MD (1980) On the political system of the Islamic State. American Trust Publications, Indiana

    Google Scholar 

  24. Habib A (2002) Incentive—compatible profit sharing contracts: a theoretical treatment. In: Iqbal M, Llewellyn M (eds) Islamic banking and finance: new perspectives on profit sharing and risk. Edward Elgar Publishing, pp 101–123

    Google Scholar 

  25. Arrow JK (1951) Social choice and individual values. Wiley, New York

    Google Scholar 

  26. Usami M, Qazi B (2010) Guide do zakah understanding & calculation. Product Development & Shariah Compilance, Maktaba Ma’ariful Qur’an, p 5

    Google Scholar 

  27. Al Qardawi (2015) Y Fiqh Al Zakah (Volume I) A Comparative Study of Zakah, Regulations and Philosophy in the Light of Qur’an and Sunnah, Scientific Publishing Centre King Abdulaziz University Jeddah, Saudi Arabia, pp 5–82. http://islamfuture.les.wordpress.com/2010/07/qh-az-zakat-a-comparative-study-volume-i.pdf. Accessed 01 Sept 2015

  28. Kuran T (1995) Further reflection on the behavioral norms of Islamic economics. J Econ Behav Organ 27(1):159–163

    Article  Google Scholar 

  29. Le Menestrel M (2002) Economic rationality and ethical behavior: ethical business between vanity and sacrifice. Bus Ethics A Eur Rev, pp 11–12

    Google Scholar 

  30. Asutay M, Yilmaz I (2015) Constituting islamic social welfare function: an exploration in islamic moral economy, pp 8–9. Istanbul, http://pubdocs.worldbank.org/en/77731446655099171/pdf/P2-Isa-Yilmaz.pdf

  31. Kubiczek A (2014) Jak mierzyć dziś rozwój społeczno-gospodarczy krajów? Nierówności społeczne a wzrost gospodarczy 38(2):44

    Google Scholar 

  32. de Soto JH (2010) Szkoła austriacka. Ład rynkowy, wolna wymiana I przedsiębiorczość. Fijorr Publishing, Warsaw, pp 45–68

    Google Scholar 

  33. Choudhury MA (1996) The nature of globalization and the muslim world. Spec Issue Manag Finance Struct Change 22(5/6):34

    Google Scholar 

  34. Choudhury MA, Bhatti I (2017) Heterodox islamic economics: the emergence of an ethico-economic theory. Routledge, London (Chap. 5)

    Google Scholar 

  35. Choudhury MA (1999) Global megatrends and the community. World Futures 53(3):56

    Article  Google Scholar 

  36. Ryner M (2012) Heterodox analysis of financial crisis, orthodoxy and heterodoxy in the production of knowledge about the EU. Milenium J Internationa Stud 40(3):647–673

    Article  Google Scholar 

  37. Munoz J (2011) Ortodox versus heterodox (Minskyan) perspectives of financial crisis: explosion in the 1990s versus implosion in the 2000s. Levy Economics Institute, working paper no. 695, listopad, p 20

    Google Scholar 

  38. Muñoz J, Snowden N (2012) Building a bric? Stock market opening and investment finance in India since liberalization. World Dev 6(40):1109 (pp 1109–1121)

    Google Scholar 

  39. Caballero RJ (2006) On the macroeconomics of asset shortages. The National Bureau of Economic Research, working paper no. 12753, pp 3–4

    Google Scholar 

  40. McKinnon RI, Pill H (1996) Credible liberalizations and international capital flows: the overborrowing syndrome. In: Financial deregulation and integration in East Asia, vol 5. University of Chicago Press, Chicago, pp 10–15

    Google Scholar 

  41. Dornbusch R (2001) The National Bureau of Economic Research. Cambridge, working paper no. 8326, pp 1–2

    Google Scholar 

  42. El-Gamal MA (2006) Islamic finance: law economics and practice. Cambridge University Press, New York

    Book  Google Scholar 

  43. Rehman AA (2010) Gulf capital and islamic finance. The rise of the new global players. McGraw-Hill, New York, p 4

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Wroclaw University of Economics, Wrocław, Poland

    Hanna Kociemska

Authors
  1. Hanna Kociemska
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Hanna Kociemska .

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Kociemska, H. (2019). Heterodox Approach to Public-Private Partnership (PPP). In: Public–Private Partnership for Sub-Saharan Africa. Advances in African Economic, Social and Political Development. Springer, Cham. https://doi.org/10.1007/978-3-030-14753-2_4

Download citation

Publish with us

Policies and ethics

Search

Navigation