Suntsova, O. (2024). Impact of public-private partnership assets on economic growth in Ukraine. Financial and Credit Systems: Prospects for Development, 2(13), 68-84. https://doi.org/10.26565/2786-4995-2024-2-07 https://periodicals.karazin.ua/fcs/article/view/23415/21819
Abstract
The paper discusses public-private partnership as a management technology—a long-term agreement between national or local government and private company. In times of economic crisis, the role of the private sector becomes increasingly significant as it gains status as an equal partner alongside the state in achieving the country's strategic socio-economic goals. The effectiveness of crisis planning and the restoration of the national economy crucially depend on fostering cooperation between the state, private sector, and civil society institutions. The most effective form of such cooperation is establishing public-private partnerships (PPP). The formation of public-private partnerships is driven not only by the state's motivation to provide financial resources to the private sector for achieving socially significant goals of socio-economic development but is also closely linked to the adoption of complex organizational, managerial, and production technologies. The principles underlying PPP play a crucial role not only in mobilizing financing for the private sector but also in utilizing sophisticated methodologies of organizational effectiveness, strategic management, and advanced production processes. Essentially, the widespread adoption of PPP principles reflects a comprehensive approach to mitigating the crisis's effects, encompassing not only financial considerations but also innovative strategies and cooperative frameworks that extend beyond traditional sectoral boundaries. This multifaceted approach is vital for overcoming economic downturns and charting a course toward sustainable socio-economic development. Thus, integrating PPP principles into crisis management measures represents a holistic strategy that harnesses the collective forces of the state, private sector, and civil society for greater resilience and prosperity of the nation.
Objective. The aim of the paper is to analyze the impact of public-private partnership (PPP) assets on economic growth and propose strategies for implementing programs aimed at restoring Ukraine's economy.
Methods. Macro-economic analysis, econometric analysis, trend analysis.
Results. Enhancing the information infrastructure of PPP should create an atmosphere of trust between private and government entities when establishing contacts for project implementation, as well as realizing the real benefits for each of these entities participating in PPP projects.
Ukraine is gradually implementing pilot projects with the support of international organizations and business representatives, leveraging significant economic potential for this purpose. In the context of establishing a legislative and institutional framework, successful preparation and implementation of pilot PPP projects in various sectors of Ukraine's economy, including infrastructure, energy, and municipal services, open up new opportunities for potential investors, banks, and consultants in one of the largest markets in Central and Eastern Europe. Ukraine is a country with rapid development of transportation infrastructure and favorable investment conditions. The Ministry of Infrastructure, supported by the European Union, the European Bank for Reconstruction and Development, the European Investment Bank, the World Bank, the International Finance Corporation, and other international partners, is working on modernizing the national transportation system by attracting investments, implementing PPP projects, and engaging private sector investments. Attracting private capital into infrastructure is a key and pressing issue for Ukraine. PPP is considered a social innovation that brings together government and business resources to address social issues. They serve as crisis management tools for ensuring sustainable economic development in regions.
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