The Impact of Public-Private Partnerships on Development Financed by the German Cooperation in Latin America Sustainable Development or Commercial Desire?

Abstract

In general terms, public-private partnerships refer to an agreement between the public sector and the private sector so that part of the services normally provided by the public sector are provided by the private sector, especially for large-scale infrastructure projects and for development of the energy sector. Since the year 2000, Germany, within its commitments acquired in relation to the achievement of the Millennium Development Goals, has focused a part of its development cooperation on the promotion of public-private partnerships, around priority such as the eradication of poverty, energy sustainability, food security, and the protection of the environment. In this article, we will evaluate the impact of public-private partnerships that have been financed by the German cooperation agencies in the Latin American continent and we will try to assess if these initiatives are being useful for the sustainable development of the region or if, on the contrary, they are only an instrument of promotion of German companies abroad, which seek in this way to open new markets and find partners for its Commercial expansion.