PPPs are often associated with other government reforms or functions involving the private sector. For example, the outsourcing of government functions (transferring them to the private or nonproﬁt sector) is an eﬀort to achieve greater ﬁscal control and more efﬁcient service delivery. Government outsourcings is an application of the classic make or buy decision to government operations, even functions that have been the traditional domain of governments. The presumption is that private vendors can provide some public services more cheaply than government agencies. However, there is nothing intrinsic to outsourcing that requires a partnership.
Privatization of traditional state-owned or state-run enterprises is another popular reform strategy. Privatization involves the transfer of some activity and its assets that in the past was operated by the public sector to the private sector, through a sale, concession, or some other mechanism. In privatization, either a government eliminates direct control and ownership of the function and the delivery of services (full privatization), or it retains some inﬂuence by holding stock in the privatized ﬁrm. The intention in all such arrangements is that the day-to-day production and delivery of these goods and services will be left to private operators, and thus the market, and that the government’s involvement will be primarily regulatory. Again, there is nothing intrinsic to privatization that requires a partnership.