The Role of Public-Private Partnership in the Socio-Economic Development of the State

Background and aim of study:

The development of integration processes and globalization requires an increase in the level of safety. Issues related to socio-ecological and economic security in particular, become relevant in modern conditions of development of production and foreign economic relations and require further research not only at the country level, but at the level of regions and enterprises. Enterprise management requires appropriate tools for planning and implementation of measures aimed, on the one hand, at reducing the negative anthropogenic impact on the environment and rational use of natural resource potential of ecosystems, on the other, ensuring effective, profitable activities, which is the basis for the implementation of the goals. Improving the socio-economic efficiency of production in today’s conditions is possible through the development of public-private partnership. Public- private partnership is cooperation between the state and the private sector which aims to redistribute functions between entities and attracts financial resources from the private sector. The last one is aimed at improving the efficiency of innovation and investment policy. Such cooperation increases national production and helps to attract investment. To monitor the interaction between the state and private enterprises, it is important to analyze the effectiveness of public-private partnerships. The last one is carried out on the basis of a proposal for a public-private partnership or on the initiative of an authorized body. The purpose of the study is theoretical and methodological substantiation of the role of public- private partnership in the socio-economic development of the state.

Research methods:

Theoretical and methodological principles of the study are expert and statistical methods, the method of analysis of hierarchies and a systematic approach.

Results:

The content of the leading definitions is specified, based on modern theoretical and methodological approaches. The principles of public-private partnership are systematized. The directions of increase of public-private partnership are theoretically substantiated. The organizational and economic model of functioning of public-private partnership in the sphere of ensuring environmental safety is proposed. It is a feedback system that consists of economic, environmental and social subsystems and is implemented through the mechanism of interaction with public authorities and market institutions (banking institutions, insurance and consulting and engineering companies), measures to improve the level of environmental safety of industrial enterprises, and also contributes to the spread of advanced achievements of scientific and technological progress and resource-saving technologies, the introduction in the production process of enterprises of rational technologies of their organization and leading samples of technical means, training of personnel of enterprises, the introduction of environmentally safe production technologies. Built organizational and economic mechanism of the state level in the framework of public-private partnerships ensure environmental security, which, unlike existing ones, is a system of long-term mutually beneficial cooperation of the subjects of interaction (enterprise, market institutions, government agencies) to ensure environmental safety, and training of qualified personnel, the exchange of advanced technologies, the spread of the leading types of equipment and resource-saving technologies, this will ensure the active economic development of industrial enterprises and improve the functionality and quality of partnership. A methodological approach to assessing the effectiveness of public-private partnerships has been developed.

Conclusion:

The basic principles and directions of public-private partnership to ensure the socio-economic development of the state are substantiated: it is necessary to build legal, organizational-economic, institutional and financial mechanisms of public-private partnership; to ensure the financial implementation of public-private partnership to ensure environmental security; to develop a methodology for assessing and analyzing the risks of public-private partnership, etc. The proposed methodological approach to determining the effectiveness of public-private partnership in the field of environmental safety of industrial enterprises allows determining the effectiveness of measures to ensure environmental safety of industrial enterprises on a set of indicators that characterize the partnership at the following levels: first level is enterprises; second level is interaction with market institutions; the third level is interaction with the state.

DOI and UDC:

UDC: 338.242:351.82:332.14 DOI: 10.26697/ijes.2020.4.25

Information about the authors:

Mashchenko Maryna Anatoliivna – Doctor of Economic Sciences, Associate Professor, Head of the Department of Economic Theory and Economic Policy, Simon Kuznets Kharkiv National University of Economics, Kharkiv, Ukraine. Research interests: environmental security of the state and enterprise, public-private partnership; https://orcid.org/0000-0002-8863-6040