The diffusion of public private partnerships: a world systems analysis

ABSTRACT

This paper analyzes the diffusion of neoliberal policies from the UK to Australia and New Zealand, and then to the Asia-Pacific region. The analytical framework employed is the world systems model developed by Immanuel Wallerstein. The primary focus of attention is the spread of public-private partnerships (PPPs) modelled on the UK Private Finance Initiative (PFI). Despite the demise of the PFI in its country of origin, and repeated failures in Australia and New Zealand, there is still considerable enthusiasm for the model in Australasia reflected in eagerness to export national expertise through aid and financial links.

KEYWORDS:

• Neoliberalism
• world systems
• policy learning
• Private Finance Initiative

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1 The New Zealand banking sector is dominated by subsidiaries of Australian banks.

2 The term ‘dominion’ was used in the British Empire from 1867 onwards to refer to the semi-independent status of the white settler colonies characterized by responsible government in domestic matters, but subject to the ultimate authority of the British Parliament. The term ceased to be applied after the replacement of the Empire by the Commonwealth of Nations.

3 New Zealand's participation in ANZUS has been limited by a dispute over visits by nuclear-armed and nuclear-powered US ships.

4 An exception is the ‘Five Eyes’ programme of intelligence sharing between the US, UK, Canada, Australia and New Zealand.

5 The importance of institutional structures is a subject of debate in the policy transfer literature. Rose (1991) treats institutions as minor obstacles to policy learning, a view rejected by Dolowitz and Marsh.

6 A similar pattern may be observed in former British possessions such as Hong Kong, discussed by Jarvis (2014).

7 The Liberal party is the main centre-right party in Australia, encompassing both socially conservative and neoliberal views. Its New Zealand counterpart is the National Party.

8 The dominant centre-left parties in Australia and New Zealand are labour parties, historically been based on the trade union movement, as in the UK. Although the spelling ‘labour’ is usual in Australian English, the Australian Labor Party uses the US spelling.

9 The ‘tax revolt’ was the name applied the Proposition 13 referendum campaign in California in 1978 which required the government to make substantial cuts in property taxes.

10 The effort is now largely forgotten, except as the inspiration for a popular musical comedy https://en.wikipedia.org/wiki/Joh_for_PM_(musical)

11 The key policy document, drawing heavily on the PFI model, is that of Partnerships Victoria (Department of Treasury and Finance, Victoria, 2000).

12 The origins of this term are discussed by Quiggin (1997).

13 Largely because of popular dissatisfaction with the outcomes delivered by this system, New Zealand switched to a system of proportional representation in the 1990s (NZ Ministry for Culture and Heritage, 2014).

Additional information

Notes on contributors

John Quiggin

John Quiggin is a Vice-Chancellor's Senior Fellow in Economics at the University of Queensland. He is prominent both as a research economist and as a commentator on Australian and international economic policy. He has written on a wide variety of theoretical and policy topics including the economics of uncertainty, climate change, micro-economic reform, and privatization.