Legal Analysis of Public-Private Partnership and Its Contribution to the Flux of Foreign Direct Inve

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Africa is a huge continent in geographic and demographic terms,facing thus a significant deficit in public facilities and infrastructure.This qualitative and quantitative deficit in public infrastructure generally raises the issue of the attractiveness of African economies for Foreign Direct Investment(FDI).Indeed,in its report titled "Evolution of Foreign Direct Investment in the WAEMU Countries during the period 2000-2011",the Central Bank of West African States quoted the last UNCTAD Global Investment Report indicating that: “Developed countries hosted by themselves,nearly half of global FDI inflows(49%)compared to 37.2% for Asia-Latin America "while " Africa has received only 3.5% of these flows”.The result is clear and Africa is aware of this.To rectify this insufficiency relating to the entry of FDI in Africa,initiatives are being taken to treat the deficit of the continent in terms of infrastructural development.In a context of budgetary constraints,these States will need certain innovative legal tools to contribute through relevant financing instrument,to the creation of national infrastructure and equipment park capable of supporting the socio-economic development.One of these new instruments is the Public Private Partnership Contract which creates and frame a cooperation between the State and a private partner.These two entities will have to work together to handle infrastructure projects and thus bring socio-economic stability and dynamism to the country concerned,thereby facilitating the attractiveness of Foreign Direct Investors.According to Elisabeth Campagnac’s words,PPP contracts are part of “the framework of public management reforms(and)have been accompanied by a profound transformation of contractual arrangements and management systems but also instruments of public action”.As an innovative legal tool,the Public Private Partnership contract should have a definite impact on the economic growth of the beneficiary countries and play a role in attracting foreign direct investment.Foreign direct investment is an important development factor for all the countries of the world: in terms of the volume of private investment,gross domestic production(all production of the country by nationals and foreigners),job creation,technology transfer,etc.This explains the intense competition between countries from different parts of the world for attracting and capturing international capital flows resulting from FDI.In their incentive policies,the improvement of the business climate(legal and tax environment,lightening of administrative procedures,etc.)and the implementation of quality public infrastructures are high on the agenda.And this is where,once again,there is a link between public-private partnership(PPP)contracts and foreign direct investment(FDI).Senegal is one of the West African countries that are pioneers in PPP.The thesis has studied how the infrastructure deficit is being filled in Senegal and how high this stabilization will improve the ease of attracting foreign funds to its economy.On a legal perspective,it is clear that the measurement in this study is a contract that will bind the State that seeks to eliminate its deficit and the private partner that aims to invest its funds according to prefixed scheme.The Senegalese Plan for an emerging Senegal(PSE)offer in this way many opportunities to develop PPP projects by implementing an institutional and legal framework for PPPs for the purpose of developing and implementing projects in the form of PPPs in accordance with government orientations.PPP scheme being a relevant basis to FDI’s attractiveness,the major challenge of this study is to justify the positive flow of foreign direct investment in relation to the realization of infrastructure projects in Senegal.In other words,it will be a question of demonstrating this positive effect that this upgrading of infrastructures has on the growth of the rate of foreign investments in the Senegalese economy.The contribution of these contracts in terms of foreign direct investment could be assessed by considering at the same time the level of equipment of Senegal in quality infrastructure financed from PPPs and the increase of capital flows from FDI.
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