Public and Private Partnership as the Basis of Financial and Economic Stability of the State

Abstract

The meanings of the term "public and private partnership" and its fundamental difference from other types of interaction between the state and the private sector are defined. The role of levers of state regulation of PPP in the conditions of growing globalization and related objective and subjective factors of economic, political and social transformations and diversity of forms of ownership in a market economy is described. Theoretical developments of neo-Keynesianism, the concept of "public goods", neo-institutionalism, which initiated a mixed economy, and later the introduction of the principles of state partnership are determined. It is shown that in today's world practice the most common form of cooperation between the state and private business, which is used in the implementation of large projects, is a concession. The provisions of the Law of Ukraine "On Public and Private Partnership", which provided the organizational and legal framework for the interaction of state and business, as well as the basic principles of PPP on a contractual basis are analyzed. Examples of the experience of the European Union and rapidly developing countries have been identified and proposed for use. The place of big business, especially small enterprises in the processes as being characterized by flexibility and opportunities to easily adapt to changing market conditions is assessed. It is stated that in Ukraine the disparity in the status of private partners should be eliminated through the provision of additional legal and economic guarantees by the state. It is argued that in a situation of inadequate public administration, insufficient financial support, prosperity of corruption at this stage, a specific form of PPP needs special attention, although in the long run the institutional form is more long-lasting and perfect. It is proved that the introduction of mechanisms and types of social partnership as a component of public and private partnership in our country is interrelated with the level of consolidation of society, development strategy and the situation in economic growth.