By Steve Rhodes
“President Trump recently discussed the potential for infrastructure reform with Democratic leaders. One way such large projects can be paid for is via public-private partnerships. In new research, Stephanie Farmer and Chris D. Poulos examine the development of such partnerships in Chicago during the tenure of Mayor Rahm Emanuel. They find that through political campaign contributions and involvement in business civic organizations, global financial interests have been able to influence infrastructure planning and priorities, including promoting public-private partnerships as a means of financing projects. These projects, they write, often see financial firms maximizing their own profits from public infrastructure.”
– Chicago Shows How Global Financial Firms Can Acquire Control Over Local Infrastructure Planning And Financing Decision-Making
“Recently, President Trump and Democratic Congressional leaders met to discuss a $2 trillion deal to rebuild and modernize the nation’s infrastructure. While the talks did not specify how projects will be financed, private finance capital is well-positioned to play a central role in a public works program given strong bipartisan support for public-private partnerships (P3s). The recent history of Chicago’s infrastructure planning reveals how private financial interests have gained influence within local governments, enabling financial firms to prioritize local infrastructure projects that generate income streams for profit-making over other public policy goals, like environmental and economic justice.
Posted on May 13, 2019