Improvement of state policy for public-private partnership development in Ukraine

Abstract

Under the conditions of increasing necessity to enhance cooperation between the public and private sectors of the Ukraine’s economy, governmental support to public-private partnership (PPP) development becomes more vital. This requires elaboration of effective public policies focusing on regulation of interaction mechanism between state and local authorities, business entities and civil society institutions to ensure systematic development of PPP is in place. The article seeks the solution for the described challenge, which is the main goal of the research. For this purpose, the authors applied theoretical and empirical methods. The article underlines the important role of government regulation mechanism in the formation of public policy for PPP development support. Regulation mechanism plays regulatory, supportive and compensatory functions. In this context, the content of "government regulation of PPP" definition has been re-defined. In this regard, (I) subjects that compose the institutional environment of PPP have been identified; (II) functional components of each PPP actor have been described; and (III) range of public policy tasks on PPP development support depending on the level of government (central/local level) has been formulated. The mix of above mentioned activities may improve the coordination system for government regulation mechanism in the field of PPP. In addition, the authors developed recommendations aimed at improvement of public policies on PPP development in the legal, institutional, organizational, budgetary and investment areas. Suggested recommendations in certain areas of public policy connected with the support of PPP development foster PPP development and improve PPP practice usage in Ukraine. The results of the research can be used by the representatives of state authorities and local governments engaged into formation of strategic programs on PPP development and implementation of PPP development concept in Ukraine