2020•Ekonomika ta derzhavaOpen access

AGREEMENT OF THE ECONOMIC INTERESTS OF THE STATE AND THE PRIVATE CAPITAL IN PUBLIC-PRIVATE PARTNERSHIP PROJECTS

A. V. Kushneruk, N. Alekseienko

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Abstract

The economic development of any state depends on its effective interaction with economic entities. In Ukraine, this issue is quite complicated, as legislation that regulates business activity is constantly changing. For this reason, most of the business is in the shadows, which is why the state does not receive significant funds for their budgeting. Therefore, thanks to the effective cooperation of all economic entities, each party receives its benefits — the business has clear and transparent rules of the game, and the state receives a corresponding filling of the budget, which in turn leads to timely payments of various social obligations and other expenses. Thus, in this article the issue of the very problems of interaction between the state and the private capital is covered, the theoretical substantiation of the importance of effective reconciliation of economic interests of the state and private sectors of the national economy is considered, the relevance of public-private partnership is shown on the example of other countries. The essence and peculiarities of the concept of "reconciliation of economic interests", various options of cooperation between the state and business, their results and consequences are considered. The essence of public-private partnership and its advantages are explained. The solutions that are needed for a more efficient and effective launch of public-private partnership in Ukraine with the attraction of private investment and modernization of the country and its economic growth are proposed. The relevancy of this issue is determined by the search for directions for ensuring the current efficiency of the national economy and improving the economic system as a whole, which requires the development of scientific and practical recommendations on the convergence of interests of the state and the private sector in the current conditions. The purpose of the article is to theoretically substantiate the importance of effectively reconciling the economic interests of the public and private sectors of the national economy through public-private partnerships.

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What this paper is about

The economic development of any state depends on its effective interaction with economic entities. In Ukraine, this issue is quite complicated, as legislation that regulates business activity is constantly changing. For this reason, most of the business is in the shadows, which is why the state does not receive significant funds for their budgeting. Therefore, thanks to the effective cooperation of all economic entities, each party receives its benefits — the business has clear and transparent rules of the game, and the state receives a corresponding filling of the budget, which in turn leads to timely payments of various social obligations and other expenses. Thus, in this article the issue of the very problems of interaction between the state and the private capital is covered, the theoretical substantiation of the importance of effective reconciliation of economic interests of the state and private sectors of the national economy is considered, the relevance of public-private partnership is shown on the example of other countries. The essence and peculiarities of the concept of "reconciliation of economic interests", various options of cooperation between the state and business, their results and consequences are considered. The essence of public-private partnership and its advantages are explained. The solutions that are needed for a more efficient and effective launch of public-private partnership in Ukraine with the attraction of private investment and modernization of the country and its economic growth are proposed. The relevancy of this issue is determined by the search for directions for ensuring the current efficiency of the national economy and improving the economic system as a whole, which requires the development of scientific and practical recommendations on the convergence of interests of the state and the private sector in the current conditions. The purpose of the article is to theoretically substantiate the importance of effectively reconciling the economic interests of the public and private sectors of the national economy through public-private partnerships.

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Available abstract

The economic development of any state depends on its effective interaction with economic entities. In Ukraine, this issue is quite complicated, as legislation that regulates business activity is constantly changing. For this reason, most of the business is in the shadows, which is why the state does not receive significant funds for their budgeting. Therefore, thanks to the effective cooperation of all economic entities, each party receives its benefits — the business has clear and transparent rules of the game, and the state receives a corresponding filling of the budget, which in turn leads to timely payments of various social obligations and other expenses. Thus, in this article the issue of the very problems of interaction between the state and the private capital is covered, the theoretical substantiation of the importance of effective reconciliation of economic interests of the state and private sectors of the national economy is considered, the relevance of public-private partnership is shown on the example of other countries. The essence and peculiarities of the concept of "reconciliation of economic interests", various options of cooperation between the state and business, their results and consequences are considered. The essence of public-private partnership and its advantages are explained. The solutions that are needed for a more efficient and effective launch of public-private partnership in Ukraine with the attraction of private investment and modernization of the country and its economic growth are proposed. The relevancy of this issue is determined by the search for directions for ensuring the current efficiency of the national economy and improving the economic system as a whole, which requires the development of scientific and practical recommendations on the convergence of interests of the state and the private sector in the current conditions. The purpose of the article is to theoretically substantiate the importance of effectively reconciling the economic interests of the public and private sectors of the national economy through public-private partnerships.

Key concepts: General partnership, Public–private partnership, State (computer science), Legislation, Private sector, Modernization theory, Business, Capital (architecture)

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