STATE-PRIVATE PARTNERSHIP: THE WORLD EXPERIENCE AND ITS USE IN UKRAINE

Authors

  • Anatolii KREDISOV Institute of International Relations Taras Shevchenko National University of Kyiv
  • Artem BILOUS Institute of International Relations, Taras Shevchenko National University of Kyiv

Keywords:

market economy, profitability, state-private partnership, concessions, projects, funds, socialization

Abstract

The history of the social development demonstrates a permanent improvement of the system of political, economic, and social institutions of the society. Such improvement occurs in a complicated manner, since the interconnection and the interdependence of social institutions, being objective unavoidable, remain absolutely unpredictable and are else strengthened under conditions of the modern globalization. This is testified by the world economic crises, contradictory public movements in various countries over the world, and even the military conflicts between them
In the hierarchy of social institutions, the economic institutions are defining. As a rule, just they serve as an object and a subject of political discussions and the corresponding actions. Namely they are the basis of the social agreement, justice, democracy, and freedom of the life of persons under conditions of the continuous progress in the provision of their diverse needs.
As is known, the economic institutions become business ones under the market conditions. Their development requires not only the free action of the laws of commodity production, but also the interference of the state with the purpose to remove the contradictions between the interests of private owners (businessmen) and other members of the society. At the present time, such interference acquires the signs of partnership.
The state-private partnership (SPP) has been developed in economically advanced countries. Its theoretical and normative-legal substantiation is permanently improved, which allows us to determine the types, forms, and organizational models of SPP and to classify it. All this was put in the foundation of the analysis of world’s practice of realization of SPP and the clarification of its state and efficiency. The analysis has indicated that the developments of the projects of SPP in the USA and countries of the EU are not identical in the last decade and have the own specific features. However, these projects are characterized by the economic efficiency and reveal a constant positive dynamics.
As the market is developing, Ukraine tries to realize SPP. By data of the World Bank, some number of projects of SPP with the total cost of 14161 bln. dollars were executed in 1992–2014 in such sectors of Ukraine’s economy as the housing communal facilities, telecommunications, power industry, and transport. The private capital attracted in this case has favored the decrease of a load on the budget, and the state had possibility to redirect the economized assets into the solution of a significantly wider circle of social problems. In this case, such forms of the participation of a private capital as the concession and the lease of object of the municipal property manifest the most intense development.
However, there exist some problems in Ukraine, which hamper the development of SPP. Their solution will consist in a further legislative improvement of the national normative-legal base. At the same time under conditions of the decentralization, the department proposed by us, which should be established in each region at the corresponding regional councils or state’s administrations, can become the outlet. A special fund created by analogy with the EU, which would finance the projects of SPP in Ukraine, will favor this process.

References

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Published

21.10.2024

How to Cite

KREDISOV, A., & BILOUS, A. (2024). STATE-PRIVATE PARTNERSHIP: THE WORLD EXPERIENCE AND ITS USE IN UKRAINE. Economy of Ukraine, 59(2(651), 4–15. Retrieved from https://nasu-periodicals.org.ua/index.php/economyukr/article/view/2016-02-1

Issue

Section

Problems of economic theory