There is little question, however, that formal private sector participation hinges on political commitment. Strong, committed leadership helps to drive a process of change in pursuit of objectives, to establish and maintain a focus and to motivate participants to overcome problems. It gives direction to public officials, departments and sub-national governments, and provides assurance to potential investors. Investors normally want to know the degree to which government is committed to private sector involvement, whether it will sustain that commitment throughout the life of transactions, and whether politically sensitive issues have been dealt with effectively. Such commitment is needed at both local and higher levels of government. While this chapter focuses on the impact of political will outside local government, the importance of local leaders and champions of private sector participation should not be underestimated and is discussed in detail in Chapter 12.
In most countries, despite decentralisation policies and autonomy rhetoric, the links between higher and lower levels of government are still extremely strong, and the commitment and understanding at national (and perhaps provincial/state) levels is therefore critical. Municipalities must consider how private sector participation can become politically desirable, how support for it can be mobilised, and how political commitment can be translated into action conducive to engaging the private sector. Box 10.1 describes the political will and driving force for change found in diverse political contexts.