Russia’s need for rapid improvement in its infrastructure has seen a concerted move to embrace public-private partnerships (PPPs) and, with investors looking for ‘established’ methods of entering emerging markets to shelter from the credit crunch, PPP presents an attractive option. But how will Russia integrate a capitalist idea into a post-communist, overheated economy?
To date, relatively few PPPs have been implemented in emerging markets, due to the nascent state of the legal and practical framework for PPPs. Indeed, although PPPs have certain advantages over conventional forms of public procurement, their complexity nevertheless presents a number of practical, legal and financial challenges in any market.
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