STATE AND BUSINESS PARTNERSHIP DEVELOPMENT IN UKRAINE

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STATE AND BUSINESS PARTNERSHIP DEVELOPMENT IN UKRAINE

Journal Title: Держава та регіони. Серія: Економіка та підприємництво - Year 2018, Vol 5, Issue 104

Abstract

The article is aimed at the integrated study of public-private partnership (PPP) theoretical backgrounds, understanding the PPP essence, and distinguishing its features, principles, advantages and disadvantages for the state and society. The previous scientific works enable to highlight a list of features that distinguish PPP from other forms of public and business cooperation, including: the public and private sectors participation; particular division of the functions within the partnership and implementing the business functions, which were previously relied on the public sector, on behalf of the state and supported by the government; legal registration of partnership; long-term relationship; state participation in the private partner projects financing; distribution of risks and responsibilities. The results of the current study enable to propose the own public-private partnership concept interpretation, concerning PPP as a consolidation of material and intangible resources of the society, including state and local authorities resources, and private sector resources on a long-term, contractual, and mutually beneficial framework for strategic priorities of state sustainable development realization, based on the public benefits creation, including infrastructure and areas development, or public services provision in the sectors of health care, education, social protection, etc. According to the legal framework, the PPP should be based on the particular principles, including equality, legality, ensuring the potential of community use effectiveness increase, harmony between the interests, invariability of objects purpose and their ownership, equitable distribution of risks. This paper proposes to consider additional public-private partnership principles, namely: 1) transparency that means providing the complete information to investors, concessionaires, and other interested parties by authorities; 2) consolidation (accumulation) of investment capital that suggests involvement of the capital, provided by different owners (private partner, state and local budgets, debt capital, etc.), into the infrastructure and social projects implementation; 3) accountability that signifies the social responsibility of all partners that involves the public councils creation for monitoring the implementation of public-private partnership projects.

Authors and Affiliations

V. M. Kuzmenko

Keywords

EP ID EP563462
DOI -
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