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The PFI; "Teething Problems or Fundamentally Flawed?": A critical analysis of the UK's Private Finance Initiative,Used
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Across much of the industrial world a new recession is about to begin; the banking system in under threat; several governments are on the verge of default; and the world's second most important currency, the Euro, is facing a possible breakup. Global policymakers have run out of both ideas and confidence. Once lauded as the solution to growing public sector deficits and ageing infrastructure the PFI has failed to live up to its billing. This paper considers the Private Finance Initiative and critically examines its ongoing relevance as a policy foundation for the financing of public sector capital projects. It looks at the panEuropean policy framework that led to its introduction and lays out a plan for reform of the initiative. It concludes with a series of recommendations to reestablish the Private Finance Initiative as a vital tool in the provision of infrastructure projects.
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