Financialization: the next stage in PPP development

Financialization has been an implicit underlying concept in the development and growth of PPPs, following the public sector's increasing dependency on the use of capital markets. This chapter focuses on concepts of financialization arising from the global macro-economic rise of financial markets, including secondary markets, for capital accumulation, and the shareholder value revolution. It traces the emergence of financialization as a phenomenon important in shaping PPP policy and operations, analyses current literature on financialization and PPPs and provides examples of the complexity arising from financialization in PPPs at the macro, meso and micro levels. The chapter concludes by proposing a research agenda which captures the enduring trend of financialization for PPP research.