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Vol. 40, Nº 73 (2022), 417-434
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Conceptual principles of state policy
of regulation of development of public-
private partnerships
DOI: https://doi.org/10.46398/cuestpol.4073.22
Petro Nikiforov *
Artur Zhavoronok **
Maksym Marych ***
Nataliia Bak ****
Nataliia Marusiak *****
Abstract
The purpose of the proposed research is to form conceptual
state policy foundations of regulating public-private partnerships
development of countries with economies in transition. The need
for substantiation of the regulating state policy of public-private
partnership development in the transition economy and transformation
processes has determined the topic relevance. The development of
theoretical foundations for the state policy is based on systemic and
institutional methodological approaches. There were used the method of
comparative analysis, statistical analysis, structuring, method of abstraction
and formalization. It has been determined that insucient activity of
countries with economies in transition in the public-private partnership
projects implementation is due to imperfect legal framework, lack of clarity
in the distribution of risks between agreement participants, political crisis
and instability, lack of a unied state policy to develop partnerships. The
principles of promoting the public-private partnership relations in countries
* D.Sc. in Economics, Professor, Department of Finance and Credit, Yuriy Fedkovych Chernivtsi National
University, 2 Kotsyubynsky Str., 58012, Chernivtsi, Ukraine. ORCID ID: https://orcid.org/0000-
0003-4860-0139
** PhD in Economics, Associate Professor, Department of Public, Corporate Finances and Financial
Mediation, Yuriy Fedkovych Chernivtsi National University, 2 Kotsyubynsky Str., 58012, Chernivtsi,
Ukraine. ORCID ID: https://orcid.org/0000-0001-9274-8240
*** PhD in Economics, Associate Professor, Department of Finance and Credit, Yuriy Fedkovych Chernivtsi
National University, 2 Kotsyubynsky Str., 58012, Chernivtsi, Ukraine. ORCID ID: https://orcid.
org/0000-0002-5400-0503
**** PhD in Economics, Associate Professor, Department of Finance and Credit, Yuriy Fedkovych
Chernivtsi National University, 2 Kotsyubynsky Str., 58012, Chernivtsi, Ukraine. ORCID ID: https://
orcid.org/0000-0003-3774-1745
***** PhD in Economics, Associate Professor, Department of Finance and Credit, Yuriy Fedkovych
Chernivtsi National University, 2 Kotsyubynsky Str., 58012, Chernivtsi, Ukraine. ORCID ID: https://
orcid.org/0000-0003-4427-2238
418 Petro Nikiforov, Artur Zhavoronok, Maksym Marych, Nataliia Bak y Nataliia Marusiak
Conceptual principles of state policy of regulation of development of public-private partnerships
with economies in transition have been identied, which include the
formation of advanced legal mechanisms and systems of regulatory bodies,
that monitor the public-private partnership implementation; stakeholder
support by taking into account private interests, public authorities and end
users; careful business partners selection. Basic determinants and a set of
conceptual requirements for policy formation have been formed.
Keywords: investment; state regulation; state policy; public
administration; public-private partnership.
Principios conceptuales de política estatal de
regulación de desarrollo de alianzas público-privadas
Resumen
El propósito de la investigación propuesta es formar bases conceptuales
de políticas estatales para regular el desarrollo de asociaciones público-
privadas de países con economías en transición. El desarrollo de los
fundamentos teóricos de la política de Estado se sustenta en enfoques
metodológicos sistémicos e institucionales. Se utilizó el método de análisis
comparativo, análisis estadístico, estructuración, método de abstracción
y formalización. Se ha determinado que la insuciente actividad de los
países con economías en transición en la implementación de proyectos de
asociación público-privada se debe a un marco legal imperfecto, falta de
claridad en la distribución de riesgos entre los participantes del acuerdo,
crisis política e inestabilidad y falta de un estado unicado sobre política
de desarrollo de alianzas. Se han identicado los principios para promover
las relaciones de asociación público-privada en países con economías en
transición, que incluyen la formación de mecanismos legales avanzados y
sistemas de organismos reguladores, que monitorean la implementación de
la asociación público-privada; apoyo de las partes interesadas teniendo en
cuenta los intereses privados, las autoridades públicas y los usuarios nales;
cuidadosa selección de socios comerciales. A modo de crotribucion, se han
formado determinantes básicos y un conjunto de requisitos conceptuales
para la formación de políticas.
Palabras clave: inversión; regulación gubernamental; políticas públicas;
administración pública; asociación público-privada.
419
CUESTIONES POLÍTICAS
Vol. 40 Nº 73 (2022): 417-434
Introduction
In the context of reforming public administration system, dicult
economic situation against the background of pandemic crisis special
importance for national economies and individual territories development
is intensifying investment activities, which, given limited budget resources,
requires additional funding for projects in various economy sectors. Such
an eective mechanism for promoting innovation and investment is
public-private partnership as an alliance of public authorities and private
sector, on the basis of which development projects can be implemented in
strategically important sectors of the economy.
However, the realisation of public-private partnership requires an
implementation of appropriate measures at the level of public policy and
public administration, which will create favorable conditions for attracting
and using investment resources, perfect legal framework that can take into
account the specics of government and socio-economic development.
Thus, the purpose of proposed study is to form conceptual foundations of
public policy to regulate the development of public-private partnerships in
transition economies.
1. Literature Review
An analysis of literature on the study subject showed that there is no
unambiguous denition of this concept, as scholars and practitioners reveal
it from dierent positions. Subjects of public-private partnership are, on
the one hand, private partners, and on the other - public sector, which
includes not only public authorities but also local governments, as well
as non-prot, non-governmental, public organizations, initiative groups,
charitable foundations.
Today, there is no common terminology for all countries, which reveals
the relationship of partnership between public authorities and business.
This is due to dierences in goals, objectives, priorities, regulatory
framework, economic development level and specics of individual
countries social policy, as well as functions of public authorities and the
degree of public administration development. For example, according to
Ball R. research, World Bank, world’s leading nancial institutions, most
European countries use the abbreviation public-private partnership (Ball
et al., 2007).
In the UK, term «Private Finance Initiative» (PFI) is used, in France
terms «concession» and «mixed economy community» (SEM) are common,
in US, Australia and Canada - P3 or Public-Private Partnerships. In Canada,
the term «public-private partnership» is not used in all economic activity
420 Petro Nikiforov, Artur Zhavoronok, Maksym Marych, Nataliia Bak y Nataliia Marusiak
Conceptual principles of state policy of regulation of development of public-private partnerships
areas, but only in the provision of public services and public infrastructure.
In countries with economies in transition and post-Soviet countries, the
term «state-private partnership» is used due to underdeveloped system of
public authorities and regulatory framework peculiarities. Thus, in Ukraine,
according to the Law of Ukraine «On State-Private Partnership» state is
the initiator of most state-private partnership projects, identies priority
economy sectors, the development of which is impossible solely through
state eorts (Law «On State-Private Partnership», 2010).
The most common «public-private partnership» term interpretation is
given by the World Bank: « it is an agreement between public and private
sides on the production and provision of infrastructure services, which
aims to attract additional investment and is a means of improving budget
funding eciency» (Ball et al., 2007: 289).
In turn, UN Economic Council denes public-private partnership as a
partnership between a state organization and a private company in the form
of medium- or long-term relationships, in which partners agree to work
closely with each other to improve services for the benet of population
(Green Paper on Public-private partnerships and Community Law on
Public Contracts and Concessions, 2004).
European Investment Bank understands public-private partnership as
a relationship established between private sector and public authorities,
often with the aim of drawing on private sector resources and / or experience
in assisting the provision and supply of state sector assets and services.
public-private partnership is considered in more detail by the International
Monetary Fund, which considers not only the partnership essence, but also
its main characteristics:
1. emphasis on providing services and investing by the private sector;
2. signicant risk transfer from the government to private sector.
European Economic Commission for Good Governance in the eld
of state-private partnership includes following in characteristics of
public-private partnership:
• long-term provision and providing of services (sometimes up
to 30 years);
• risks transfer to private sector;
• variety of contracts forms concluded by legal entities with
state and municipal structures (Green Paper on Public-Private
Partnerships and Community Law on Public Contracts and
Concessions, 2004).
A fundamental description of public-private partnership has been
provided by the researcher E. Savas, who noted that:
421
CUESTIONES POLÍTICAS
Vol. 40 Nº 73 (2022): 417-434
1. public-private partnership is any agreement in which public and
private sectors of the economy come together to produce goods and
provide services;
2. public-private partnership - complex, multi-partner infrastructure
project;
3. public-private partnership denes formal cooperation between
business, society and local authorities in order to develop the territory
and improve population living conditions, within which traditional
roles of the state and private sector are redistributed (Savas, 2000).
However, the author does not specify conditions under which the
interaction of public and private sectors will be dened as public-
private partnership. In the interpretation of public-private partnership
relationship, E. Klein and D. Theisman emphasize the common goal of
partners to create a public-private partnership in the joint production form,
in the process of which the distribution of risks, costs and future prots
is obligatory. However, authors do not nd dierences between public-
private partnership and other forms of cooperation between state and
private sector (Klijn and Teisman, 2000).
Transition economies researchers, such as I. Neykova, share US and
Western European scholars’ views noting that, the concept of SPP can
be implemented in the most important economy areas (social sphere,
transport, energy, etc.), in particular in the economy innovation sector
(Neykova, 2010). In the context of public administration decentralization,
it is advisable to pay attention to the denition given by Zapatrina I. and
Lebeda T., who consider public-private partnership as an alliance of
public authorities and private business in order to implement projects in a
wide range of activities - from the development of strategically important
economy sectors to providing public services nationwide or on individual
territories (Zapatrina and Lebeda, 2011).
According to Karpa M. (Karpa, 2017), activities of the state partner in
the model of state-private partnership are in the plane of ensuring primarily
public interests, interests of local communities, solution to state and local
issues.
The analysis allows us to note that the reason for dierences in the
interpretation of public-private partnership is the dierence in perception
of the importance of partnership between government and business in the
modern public administration system (Abramova et al., 2007; Koblianska
et al., 2020; Kosach, 2017). However, common denominator is the
interpretation of public-private partnership as a mechanism for cooperation
between public administration and business to achieve a common goal
while pooling resources to increase benets for each side.
422 Petro Nikiforov, Artur Zhavoronok, Maksym Marych, Nataliia Bak y Nataliia Marusiak
Conceptual principles of state policy of regulation of development of public-private partnerships
It is also possible to identify following public-private partnership
characteristics: long-term nature of the relationship, sharing of risks,
responsibilities, costs between partners, and dening benets for each side
of the partnership (Alexander, 2010; Alexander, 2012; Ayres, 1992).
These approaches to the consideration of this concept also emphasize
the interest in public-private partnership for both state and business,
which in the future benets them both. Thus, public-private partnership
is a system of cooperation and promotes the innovation development, the
formation of innovation infrastructure, budget funds ecient use.
2. Methodology and Methods
The theoretical and methodological basis of the study was formed
by scientic works of leading scientists on this topic. The development
of theoretical foundations for the state policy formation to regulate the
development of public-private partnership is based on systemic and
institutional approaches.
To achieve this goal there were used general scientic methods of
phenomena and processes cognition: the analysis and generalization
of theoretical sources and scientic literature; method of comparative
analysis - to compare factors inuencing the formation and development of
partnerships in dierent countries; statistical analysis - to study dynamics
and identify trends in public-private partnership processes; structuring
method - to identify individual factors inuencing the formation of policy
on certain classication criteria; method of system analysis, method of
abstraction and formalization - for the development of state policy conceptual
foundations to regulate the public-private partnership development;
graphic method - to display the theoretical and methodological material of
the study.
3. Results
Current trends in public administration in industrialized countries do
not focus on competition, but on cooperation and partnership as the basis of
business development. Public-private partnership as a form of interaction
between public and state sectors is widespread in many countries around
the world due to the possibility of implementation in any area where private
and public interests are binded (Büthe et al., 2011; Derhaliuk et al., 2011;
Eisner et al., 2018).
We are talking about both small and large-scale long-term investment
projects. At the same time, in EU countries, public-private partnership
423
CUESTIONES POLÍTICAS
Vol. 40 Nº 73 (2022): 417-434
is considered a priority as a mechanism for combating social inequality
and as a factor in the society development. In turn, in United States such
partnership is primarily associated with the infrastructure modernization
and economic development of cities (Gonta et al., 2016; Gechert et al.,
2018; Gonta et al., 2017).
In developed countries, the area of public-private partnership projects -
transport and communication facilities (USA, Australia, UK, Spain, South
Korea), education, information technology (Germany, UK), health care
(UK, Canada), recycling waste (South Korea, Canada), water use (USA). In
developing countries, priority is given to the use of public-private partnership
in the roads and airports construction, as well as water treatment facilities
(India, Brazil, Mexico, Saudi Arabia). Post-Soviet countries and countries
with economies in transition prefer the construction of roads, airports,
subways and tunnels (Bulgaria, Czech Republic, Poland, Ukraine).
In 2020, Germany came out on top in terms of implemented public-
private partnership projects costs among European countries (the total
cost of implemented projects was 2.8 billion euros), with 10 projects
implemented (Market Update Review of the European Public-Private
Partnership Market, 2020). France ranks second in terms of funding, but it
is leader in the number of projects (12 implemented projects). In 3rd place,
both in terms of quantity and value, the United Kingdom (Fig. 1).
According to Market Update Review of the European Public-Private
Partnership Market (2020), the largest number of projects was implemented
in the eld of education (10), transport (7), cultural and recreational sphere
(6). The most signicant public-private partnership projects implemented
in 2020 include: A3 Road Widening (EUR 1.5 billion) in Germany; - A49
Kassel-Schwalm Motorway - (EUR 1 billion) in Germany - Soa Airport
Concession - (EUR 881 million) in Bulgaria - A465 Dualling Section 5
& 6 - (EUR 716 million) in the United Kingdom - Route Center- Europe
Atlantique - (EUR 548 million) in France.
Thus, global trends prove high eciency of public-private partnership
as a form of interaction between the state, business and society. This is
conrmed, rstly, by the quantitative growth of public-private partnership
s in the world and in the EU (number of projects and total investment in
them). Thus, 409 projects worth about $ 100 billion were implemented in
2019. USA, which is 100 projects more than in 2017 and 74 projects more
than in previous period (Market Update Review of the European Public-
Private Partnership Market, 2019).
424 Petro Nikiforov, Artur Zhavoronok, Maksym Marych, Nataliia Bak y Nataliia Marusiak
Conceptual principles of state policy of regulation of development of public-private partnerships
Fig.1. Number of public-private partnership projects
implemented in European countries in 2020
Source: compiled by the authors based on information of the Statistics Service of the
European Union.
Another positive trend of public-private partnership processes is the
diversication of transaction market by countries and economy sectors.
This process has been observed in the EU since 2006. In the United
States, public-private partnership diversication has an international
focus, meaning that public-private partnership s are used to address socio-
economic problems of other countries (for example, projects aimed at
developing the medical system in Africa) (Ivanova et al., 2022; Khudolei et
al., 2021; Zhavoronok et al., 2022).
If we consider the geographical diversication of public-private
partnership projects implementation (Fig. 2), then for the period from
1990 to 2018 Latin American and Caribbean countries are leaders in
public-private partnership projects investing – they account for $ 662.68
billion investments (45% of total investment). In second place - countries of
South Asia with investments in the same period of $ 296.11 billion. Europe
and Central Asia account for $ 272.39 billion in public-private partnership
investment (Market Update Review of the European Public-Private
Partnership Market, 2019).
425
CUESTIONES POLÍTICAS
Vol. 40 Nº 73 (2022): 417-434
Fig.2. Geographical diversication of public-private partnership
projects, billion dollars
Source: compiled by the authors based on Market Update Review of the European
Public-Private Partnership Market.
State sector participation in the nancing of major infrastructure
projects is a key form of public-private partnership in Latin America and
Southeast Asia. Similar experiences are also common in Morocco, Jordan,
Moldova and Slovenia. The main problem facing national economies of
many countries in the process of establishing public-private partnerships
is to reconcile the contradictions between public sector and business and
minimize public-private partnership project each side risks (Kosach et al.,
2016; Lytvynenko et al., 2020).
If we consider the experience of implementing public-private partnership
projects in countries with economies in transition, the formation of their
business-government partnerships began much later than in the world.
This is due to the transition of these countries to market economies in
the 90s of twentieth century and, as a consequence, slow formation of
the business sector, appropriate regulatory mechanisms and a proper
regulatory framework. For example, in Ukraine as a post-Soviet country,
between 1991 and 2012 only 58 public-private partnership projects were
launched, 2 of which were terminated. The basic law regulating public-
private partnership relations (according to Ukrainian law - public-private
partnership) was adopted only in 2010.
426 Petro Nikiforov, Artur Zhavoronok, Maksym Marych, Nataliia Bak y Nataliia Marusiak
Conceptual principles of state policy of regulation of development of public-private partnerships
It laid institutional foundations for improving the provision of socially
signicant services in the industry, especially in infrastructure economy
sectors, through the participation of business sector on publicity principles,
transparency, proportionality, fairness and non-discrimination. The largest
number of public-private partnership projects was implemented in 2012 -
21.
Since 2013, there has been a signicant decline in the formation of
partnerships between government and business - thus, in 2014 only
1 project was implemented, and in 2015-2016 projects in this area were
not implemented at all, although contracts were concluded (in 2015 were
concluded 177 public-private partnership agreements, in 2016 - 186).
Instead, in 2019 the number of public-private partnership projects was
already 13. As of January 1, 2021, on terms of public-private partnership
192 agreements have been concluded in Ukraine, 39 of which are being
implemented (29 - concession agreements, 6 - agreements on joint
activities, 4 - other agreements), 153 agreements are not implemented (118
- not executed, 35 - terminated / expired) (Ocial site of the Ministry of
Economу of Ukraine, 2020).
Thus, not all public-private partnership agreements (projects) are
being implemented in Ukraine. Main reasons for this are, rst of all,
the imperfection of legal framework, corruption, lack of clarity in the
distribution of project risks between the agreement sides, political crises
and instability, unattractive investment climate, lack of a single targeted
public policy to develop partnerships.
There are several key points that should promote the development of
public-private partnerships, especially in countries with economies in
transition:
1. Formation of perfect legal mechanisms and controlling bodies systems
that monitor public-private partnership projects implementation.
2. Stakeholder support by taking into account interests of the private
sector, public authorities and end users, achieved through open
dialogue between partners.
3. Careful business partners selection.
These trends require key changes, which will relate primarily to
the regulatory framework of public-private partnerships, and increase
private investors condence to the state as a partner in the proposed
relationship. The use of public-private partnership as an eective tool for
the development of priority industries is determined, rstly, by taking into
account interests of business directly; secondly, increasing use eciency of
the state property and budget funds; thirdly, by stimulating private sector
to develop entrepreneurial activity in areas that have the greatest potential
427
CUESTIONES POLÍTICAS
Vol. 40 Nº 73 (2022): 417-434
for quality economic growth. These areas are reected in the state budget
expenditures, legislative initiatives and development of strategic programs
for public-private partnership.
The state regulation process of public-private partnership relations is
accompanied by the formation of appropriate policies and implementation
mechanisms.
Public policy goals to regulate the development of public-private
partnership are:
• achievement of innovative development, which involves integration
of enterprises for the joint development and innovative projects
implementation in the priority economy areas;
• expansion of investment opportunities - involvement in public-
private partnership relations makes business entities stable
and investment attractive by reducing costs and streamlining
technological processes;
• development of the institutional environment to ensure eective
public-private partnership agreements implementation;
• formation of institutional, economic and legal mechanisms for
public-private partnership development, based on the use of
appropriate tools;
• formation of strategic guidelines for infrastructure development.
• In this context, the key task of public-private partnership state
regulation policy is to nd a balance between interests, potential
and stimulus of public and private partners, taking into account
opportunities of country socio-economic development (Fig. 3).
428 Petro Nikiforov, Artur Zhavoronok, Maksym Marych, Nataliia Bak y Nataliia Marusiak
Conceptual principles of state policy of regulation of development of public-private partnerships
Fig. 3. Interaction of interests and opportunities of public-
private partnership agreement sides
ОPPORTUNITIES
1) implementation of PPP projects;
2) participation in the creation of social
infrastructure and business infrastructure;
3) increasing the level of employment of the
rural population;
4) increase the profitability of budgets.
ОPPORTUNITIES
1) public investment in the provision of
subsidies;
2) ensuring the state order;
3) provision of state property for use;
4) investment and legislative support for the
development of small businesses in agriculture
and the creation of appropriate infrastructure
NEE DS
1) the formation of priority areas for
production growth in the industry;
2) ensuring sustainable development of the
agri-food sphere;
3) ensuring food security;
4) job creation.
NEE DS
1)providing state support;
2) formation of developed infrastructure;
3) att ract ing investment resources;
4) ensuring access to commodity markets;
5) providing favorable legal conditions for
business development;
BUSINESS
GOVERNMENT
Source: compiled by the authors.
Business and state interests, on the one hand, coincide, as both sides of
the partnership are interested in improving economic eciency, increasing
prosperity and protability. On the other hand, social outcome of the
public-private partnership project is a state priority, while business is more
interested in making a prot. Coordination of the state and business entities
interests in the implementation of state regulatory policy of public-private
partnerships development is a complex task, that must take into account
legal and organizational principles.
Mutual intersection of considered interests, needs and opportunities
for both partnership sides under the inuence of state regulatory policy
mechanisms determines prospects of public-private partnership projects
implementation based on the study of opportunities and prospects for the
development of certain management areas. Despite priorities of economic
sectors, directions of public-private partnership projects implementation
should be consistent with the requirements of market environment and
the development of market infrastructure in the presence of legislative
restrictions (Fig. 4).
Institutional role of the state is characterized by performing a set of
functions and the ability to solve a whole set of issues, arising from changes
in internal and external environmental impact on public-private partnership
projects implementation. At the same time, market levers, a combination
of business development priorities and goals, and state economy sector are
429
CUESTIONES POLÍTICAS
Vol. 40 Nº 73 (2022): 417-434
an important factor in intensifying competitive relations, implementing
diversication, business integration, reorganization and innovation.
The implementation of state policy of regulating public-private
partnership development is inuenced by the following factors:
1) Exogenous. The inuence of these factors should be separated by
levels. Thus, mega-level is represented by such factors as international
economic integration, globalization, scientic and technological
progress, environmental factor. At macro level, the most inuential
factors are public economic policy, investment climate, budget
nancing and state support mechanisms. Mesorevel or territorial is
characterized by such factors as geographical location, natural and
labor resources, climatic conditions, demographic situation.
2) Endogenous. Factors of this type include level of business structures’
potential production, level of innovation potential development,
competitiveness of services to be provided under the public-private
partnership project, both partners investment opportunities.
Fig. 4. Basic formation determinants of the public-private
partnership development state regulatory policy
Source: compiled by the authors.
430 Petro Nikiforov, Artur Zhavoronok, Maksym Marych, Nataliia Bak y Nataliia Marusiak
Conceptual principles of state policy of regulation of development of public-private partnerships
3) System. Factors such as an eectiveness of market mechanisms
(competition, price regulation, regulatory support, nancial support,
investment and innovation attractiveness of a country or region)
have a systemic impact on the implementation of state regulatory
policy.
4) Structural. The most inuential factor in this group is the ratio of
goods supply with socio-aggregate demand for these goods.
5) Institutional (infrastructural support for the public-private
partnership projects implementation, the development of public
authorities system involved in the regulation of public-private
partnership; the degree of public-private partnership capacity
development in a particular area; the stability of interaction between
public-private partnership entities.
This determines a set of conceptual requirements for the formation
of state policy to regulate the development of public-private partnership
(Table 1).
The basis for state policy implementation to regulate public-private
partnership development is the formation of institutional, economic and
legal mechanisms to support and regulate public-private partnership at
national, regional and municipal levels. This task is a priority, because
without its solution it is impossible to talk about institutionalization of
public-private partnership agreements regulation process.
Table 1. Conceptual requirements for the formation of state
policy to regulate the development of public-private partnership
Requirement Contents of the requirement
Integrity The state policy of regulating public-private partnership
development is one of strategic development tools of
the state and a component of the state economic policy
Consistency The eectiveness of state policy of regulating public-
private partnership development is based on relevant
projects implementation, developed in accordance
with monitoring measures.
Motivation Implementation of measures to motivate business
and government ocials to initiate public-private
partnership agreements
Decentralization Taking into account principles of public administration
decentralization in the formation of priority areas for
public-private partnership projects
Source: compiled by the authors based on information of the Statistics Service of the
European Union.
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The most common tools and approaches for quality implementation
of this policy are legal regulation of contractual relations, use of short-
term and long-term program documents that contribute to public-private
partnership agreements conclusion and their eective implementation,
strategic management, as well as implementation of nancial, advisory,
information support measures.
Comprehensive implementation of these mechanisms is the basis of
state regulation process, which, subject to local governments involvement,
is transformed into a process of public regulation. This will make it possible
to form legal, organizational and economic foundations for the development
of priority economic areas not only at the state but also at the regional and
municipal levels.
Conclusion
The role of public-private partnership in socio-economic development
varies for dierent countries, but there is a clear tendency to increase
its impact on the process of improving the functioning of state sector
problematic and priority branches. The state policy of regulating public-
private partnership development is an important component of the state
socio-economic policy. Its focus on public-private partnership, as an object,
is in parallel with the state policy in other areas, related to infrastructure
projects implementation based on this type of contractual relationship.
This policy provides a creation of partnership system between
government and business, which includes a set of measures to support
public-private partnership, provided by relevant government programs.
The development of public policy to regulate public-private partnerships
development involves structuring goals, setting priorities and specifying
tools, as well as development guidelines for public-private partnership
subjects, including public authorities at all levels, business, scientic and
nancial structures.
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