Private Finance Initiative (PFI)

This is a short revision video on the economics of the PFI. Private Finance Initiative (PFI) changes the model of funding for large-scale investment projects. PFI was first launched in 1992 by a Conservative government and was extended heavily by the Labour government of 1997-2010. By 2011, more than 700 hospitals, schools, prisons and other public sector projects had been built under the PFI scheme. But PFI has become less common in recent years in part because of fierce criticism of it as a way of financing and delivering capital projects on behalf of the state.