WEB-ресурс научно-практических конференций

Salukvadze I.N. ^* , Zykov A.Y. ^**

^* Lugansk State Institute of Housing - Communal Services and Construction, ^** East-Ukrainian National University , after V. Dal , Lugansk

CONTEMPORARY ISSUES OF BUSINESS AND STATE PARTNERSHIP IN UKRAINE

An important instrument for achieving the strategic goals of socio-economic development of Ukraine and the efficiency of state management of the real sector of economy is state and private partnership (SPP).Despite the existence of certain forms of cooperation between the state and private sector based on the principles of SPP, the Ukrainian economy is only at the beginning of a complex process of creation of the appropriate SPP project administration system. The introduction of SPP projects in Ukraine is of random and sporadic nature, in addition, the application area of these projects is very narrow, which does not allow using the potential of public-private partnership in the development of economy and social sphere. The investment dynamics analysis in a project on the basis of SPP indicates that the potential of public-private partnership has not been used for the development of economic and social infrastructure of the national economy. The introduction of SPP in Ukraine will allow launching some effective institutional mechanisms for resolving issues on property rights that inevitably arise during the implementation of investment projects and are of particular relevance for developing economic and social infrastructure. An essential condition for the development of SPP in Ukraine is a reliable system of protection of rights of private entities on the objects of investment, the results of science and research and research and design development work, which creates the foundation for the extensive involvement of assets into the process of technological upgrading of high risk and strategic areas of economic activities. Synergetic effect achieved by consolidation of the resources of the state and private sector enables to improve effectiveness of economy performance, especially in infrastructure.

The lack of developed ideology and implementation mechanism of the state-private partnership in Ukraine leads to the increase of total distrust of the Ukrainian society toward the authorities, the emergence of new market and state failures, the growth of the informal sector of the economy and the deepening of socio-economic instability.

Under the condition of a proactive process of development of state-private partnership in other countries of the world, the gap of the national economy competitiveness regarding the leading foreign countries will deepen. Underdevelopment of financing mechanisms of investment activities on the basis of partnership relations between the state and business will lead to conservation of the extensive type of economic growth and slowing down of the processes of economic restructuring.

Underdevelopment of modern management mechanisms and financial resources usage of the country on the principles of state-private partnership (primarily on the transparency of procedures, consolidation of property rights, management of investment risk) decreases the efficiency of the state anti-crisis program, designed to provide effective stimulation of the domestic demand. The predominance of traditional mechanisms of state financing of investment projects entails excessive growth of the state debt on loans, which will undermine the level of financial stability of the national economy.

Without the introduction of SPP models the investment into the fixed assets of infrastructure kinds of activities is restrained which will potentially result in braking processes of intensification of entrepreneurial activity, lead to the loss of competitive advantages in the market of transit services and may have occurrences of technogenic catastrophes as consequences.

An important consequence of the lack of the created solid effective system of partnership and social responsibility of business in Ukraine may be the aggravation of social problems: increasing of social tension and marginalization of the population both in individual local social communities and in Ukraine in general, which will counteract the overcoming of the financial and economic crisis; decreasing in productivity and the labor intensity of the staff of enterprises; reducing social and economic activity of the workforce resources of the regions and the country; worsening of the balance of social and economic interests of citizen, various groups and strata of the population, business, authorities and the society; unavailability or termination of certain social and environmental programs’ implementation at the regional and state level, and as a consequence, reducing the level of the coverage of the population with certain social services; reducing the number and quality of human assets of business, regions and territories (especially in multifunctional cities); reducing the environmental and energy production efficiency and environmental degradation in the region; the impossibility to use the innovative social technologies; deterioration of business reputation and perspective of development of domestic business; reducing the effectiveness of risk management at enterprises; reducing the radius of trust and level of stability of social institutions and as a result, decreasing of social assets in Ukraine.

State-Private Partnership in Ukraine has become a catalyst for activity, the attractor of the formation of partnership structures that promote the development of economic and social sphere. This is possible under the condition of the legislative determination of the legal, economic, and institutional frameworks for SPP functioning in the special law on the development of SPP. After the adoption of the special law the features of SPP in certain industries of economy and also legislative improvement of mechanisms for SPP (concession, production sharing agreements, joint activities, etc.) will require regulatory settlement.

To develop state-private partnership in Ukraine it is necessary: to consolidate the principles of SPP in the national and regional strategies of socio-economic development; create a promoting institutional environment for SPP, develop and improve its regulatory framework; provide state support and guarantees of the state to the partners from the private sector; create an authority on SPP matters, as well as civil society institutions necessary for its activities: associations, unions, expert and advisory committees; introduce public control over performance of contractual obligations by all parties-participants.

In the strategy of implementation of state-private partnership the following things should be reflected: general trends and areas of SPP, the types and scope of services offered by the SPP, provided forms of partnership; the fundamental principles of SPP performance, the priority of the state interests, efficient allocation of risks between the parties, political support from the state, partner like, equitable and transparent nature of relations, economic (social) effective performance of SPP projects.

The main principles of legal security include the following things: immutability of the forms of ownership and purpose of the object, which is being constructed, upgraded or administered by SPP mechanisms, the entire term of the partnership; fair distribution of risks associated with the implementation of SPP contracts, the equitable distribution of the results of the performance between the state and private sector.

The state financial institutes development construct, which inter alia, should incorporate the priorities of monetary policy of the state-owned banks and the development and performance of the public leasing companies, establish effectiveness criteria for their activities, assess the necessity and scope for further growth of their assets, requires development.

In order to improve efficiency of employment of the public financial resources within the SPP frameworks, extend access of the entities to the financial resources of the state, it is expedient to form the Investment Fund of Ukraine, which will significantly increase business opportunities for the implementation of the major investment projects through the direct funding mechanisms, lending, as well as providing state guarantees. For the implementation of the state support for SPP it is expedient to create a state venture innovation fund which will co-finance the innovative venture funds from private investors selected on a competitive basis; to provide budgetary subsidies for the creation of private mutual investment funds that can be formed by local self-governed authorities in the framework of the creation and development of infrastructure development of small enterprises on a competitive basis. Application of the effective mechanisms of the cooperation between the state and business in the social sphere is one of the means of addressing social problems in Ukraine, which should requires enhancing social responsibility of businesses and nonprofit organizations. To this end it is necessary: to develop some measures to stimulate the development of self-regulation of social responsibility; develop and implement the programs of promoting social external responsibility of enterprises (in particular, the economic motivation program, the programs of persuasion or involvement into social partnership and dialogue which will enable to mobilize some additional financial and human resources to solve social problems.

It is in cooperation between the state and private sector and in their combined efforts and resources a common vision of the principles of management should be implemented that will enable to harmoniously combine the interests of the state, business and civil society. Such combination can be reached by public control over the fulfillment of the contractual terms of the partnership by all parties and guarantees of their compliance with the principles of transparency and information openness.

References:

1. Socio-economic status of Ukraine : Implication for People and the State / National Report - [electronic resource]. - Mode dos dumb: http://www.nas.gov.ua/Pages/default.aspx