PUBLIC-PRIVATE PARTNERSHIP AS A MODERN TOOL OF ECONOMIC MODERNIZATION
DOI:
https://doi.org/10.31470/2786-6246-2025-11-108-117Keywords:
public-private partnership, conditions for creating public-private partnerships, key characteristics of public-private partnerships, functioning of public-private partnerships, key sectors of public-private partnerships, international experience of public-private partnerships, development of professional competencies of civil servantsAbstract
The article analyzes modern mechanisms of public-private partnership as the basis for attracting private investment to solve the problem of economic modernization of the country. In modern conditions, when state budgets are often limited, public-private partnerships are becoming an effective way to attract investment for the implementation of large-scale, socially important projects. Thanks to public-private partnerships, it is possible to ensure the modernization of infrastructure, the development of transport networks, the development of energy projects, and the improvement of social services. Private companies, having greater flexibility and an innovative approach, are able to optimize costs and increase the efficiency of project management. In addition, public-private partnership helps reduce financial risks for the state, since the distribution of responsibilities and duties allows you to avoid significant budget costs. This is especially important in the context of globalization and rapid economic changes when the state seeks to maintain economic stability and ensure sustainable development.
The public-private partnership offers several potential advantages, especially in the context of post-war reconstruction and economic development of Ukraine. The main advantages include attracting capital, innovation, and effective resource management. To increase the effectiveness of public-private partnerships in Ukraine, several measures are needed: legislative reform (simplification of the legal framework and elimination of gaps in the current legislation); development of the potential of professional competence of government specialists (providing training and support for civil servants and private sector specialists involved in public-private partnership projects); use of digital technologies for reporting (increasing transparency in the selection, procurement and implementation of projects); implementation of a risk management system (development of reliable risk assessment and mitigation strategies); reliance on international cooperation (using the support and experience of international organizations and financial institutions); expansion and encouragement of the participation of entities with mixed (public-private) forms of ownership; ensuring high requirements for private candidates entering into public-private partnership relations; updating the regulation (improving the regulation of public-private partnership activities and assessing the impact on the environment and insurance).
Public-private partnership is a powerful tool for economic development, which allows attracting private capital and reducing budget costs for the implementation of socially important projects. To achieve maximum efficiency, it is necessary to take into account the legal, economic, and social aspects of the implementation of public-private partnership. Based on the best international practices and addressing the specific challenges facing Ukraine, public-private partnerships can now play a key role in the post-war reconstruction and long-term development of the country.
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