PUBLIC-PRIVATE PARTNERSHIP AS A MECHANISM OF DEVELOPING INTERESTS OF SOCIAL GROUPS AT THE REGIONAL LEVEL
Abstract
The article discusses the essence of public-private partnership as a mechanism for reconciling the interests of the state and business with subsequent benefits to society as a whole, discloses the possibilities of using this tool for the implementation of infrastructure projects and the provision of public services in Ukraine, considering the advantages of PPPs, showing social importance and effectiveness both for citizens, and for state authorities and local self-government bodies.
Examples from the history and practice of social life for defending the interests of social groups in various ways and methods (medieval guilds, political clubs during the French Revolution, professional unions of hired workers in the New Age, entrepreneurial organizations, miners' strikes, etc.) are given.
Particular attention is paid to the fact that the harmonization of interests of social groups is historically important and necessary factors in preventing an emergence of social challenges and social misunderstandings. Harmonization of the interests of social groups should be considered both as a factor of social security and as a factor of social development. By its nature, the interests of social groups are different, from some misunderstandings to a general rejection, even to a hostile attitude that provokes conflicts and leads to social challenges and social risks. The situation is also difficult due to differences that exist at a regional level, since the opportunities of one region or another have different human, natural, industrial and other resources. Therefore, depending on how the resources are used, and on the results which are received by different social groups, we can talk about the successful or not quite successful management of the parties of local self-government. Since today's society is acknowledged not only informational but also communicative, the search for mechanisms of harmonization of interests should be peaceful and productive. One of such mechanisms, in the opinion of the author, should be public-private partnership at the regional level.
The emergence of the idea of public-private partnership and its perception as authorities, private sector and citizens is outlined. Despite the obstacles, the practice of public-private partnership is spreading in all regions of the world. The fundamental reason for building partnerships is the realization that private and public sectors have unique characteristics that give them the advantage of providing services to the population. Another fundamental prerequisite for the formation and dissemination of the partnership practice was the change in approach to understanding the functions of governments. In particular, the awareness of the need in transferring a part of government functions to a private sector, as more mobile and efficient. Thus, public-private partnerships are considered as long-term cooperation based on an agreement between the state (state and local governments) and private companies, aimed at financing, designing, implementing and managing public facilities and public services, which are traditionally provided by the state (public sector).
Attention is drawn to the fact that, unlike traditional ways of creating and maintaining infrastructure, public-private partnership involves the sharing of responsibilities, rewards and risks between the public and private sectors. Most PPP projects start with the definition of risks, as well as their distribution between the public or private sectors, or between the two sectors at the same time. It is assumed that due to such a distribution of risks, the main goal of the partnership projects, namely, the provision of the highest quality services, can be achieved.
It is noted that the current European legislation does not directly regulate public-private partnership. However, the general principles established by the Agreement on European Communities, in particular provisions on the freedom of establishment of legal persons and the provision of services, as well as legal acts on public tenders and concessions, create the legal basis for the formation of PPP. So, the European Community Agreement stipulates that all contracts, including public-private partnerships, must comply with the principles of transparency, impartiality, proportionality and mutual recognition. In practice, this means that the creation of partnerships should not have a negative impact on the functioning of the free market of services and should be based on the principles of the honest selection of a private partner by the state or local government.
The emphasis is placed on the fact that an authorization of a partnership agreement between the state and a private organization is the result of a compromise between the priority of economic and financial efficiency that are key to business and the social priorities that are central to public authorities and local authorities.
Examples of public-private partnerships at the regional level, in the South of Ukraine, are provided. It is shown, that a public-private partnership is a necessity for evolving public interests, at the country and at the region's level.
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