State private partnership as a public policy tool under decentralization of power in Ukraine

Keywords: state private partnership, decentralization of public power, public policy, regional development, community, concession, partnership, investments, infrastructure, regulatory support

Abstract

The article considers the issue of public policy formation in terms of state private partnership development as the most efficient form of interaction between public authorities, private business and science implemented on the principles of equality.The study defines the essence of the concept of ‘state private partnership (SPP), its purpose, forms, areas of implementation and characteristics from the standpoint of institutional theory and identifies the benefits of state private partnership. The partnership comprises the possibility of attracting additional financial resources that can be used for community development, the possibility to restore infrastructure, to receive quality services and socio-economic benefits and additional jobs; business and the state share the risks.The study investigates the state of public and private partnership realization in Ukraine and the leading countries and defines risks for public authorities and the private investor as well as factors constraining this process in Ukraine. These include imperfect regulatory and institutional support, lack of political will; lack of standard, simple and transparent tender procedures for SPP projects and defined priority areas for their implementation, unstable legislation on attracting foreign direct investment.The study examines the current state of legal regulation state private partnership in Ukraine and justifies the need to improve the institutional support of this process in terms of forming public policy to involve regional higher education institutions into examination of innovative projects and the staff training.The expediency of introduction of state private partnership relations as a form of cooperation between public administration bodies and private economic entities for the purpose of sustainable rural development in the conditions of decentralization of power is substantiated. In order to ensure the effective implementation of state private partnership projects, public authorities should pay attention to creating a number of mandatory general prerequisites and ensure a proper examination of documents provided by potential private partners to make sure they show the real situation through involving scientists in this process.

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Published
2020-12-30
How to Cite
SokolskaТ., Panasiuk, V., Polishchuk, S., & Osypenko, B. (2020). State private partnership as a public policy tool under decentralization of power in Ukraine. Public Administration Aspects, 8(6), 192-203. https://doi.org/10.15421/1520117
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Article