PRINCIPLES OF THE STATE-PRIVATE PARTNERSHIP FINANCIAL MECHANISM FORMATION AND FUNCTIONING

  • Bohdana Shuliuk
Keywords: financial mechanism, public-private partnership, principles of formation, principles of functioning, legislative regulation

Abstract

The scientific approaches to understanding the principles of functioning of the financial mechanism at macro and micro levels are highlighted. It is noted that the list of principles is not exhaustive, and it is constantly updated due to changes in Ukraine and world. The scholars’ interpretation of the principles of public-private partnership, which provide equality and certain guarantees of the state and private partner, mobility, flexibility, speed of making financial decisions, development and introduction of innovations are revealed. On the basis of generalization and systematization of existing approaches to the definition of the principles of «financial mechanism» and «public-private partnership», the principles of the financial mechanism of public-private partnership based on the consideration of domestic social challenges and requests of the economic space were highlighted. In particular, those that are inherent in the process of forming this mechanism (scientific validity and conformity, proportionality and balance, complexity, purposefulness, financial sufficiency, and alternatives) and those that determine the basic conditions for its functioning (neutralization of economic risks, hypothetical, operational, informational and public openness, efficiency, synergetic). This approach will enable participants of the partnership to create a financial mechanism aimed at solving state problems regarding the development of strategic sectors of the economy and improving the quality of social infrastructure, increasing the profitability of a private partner. The necessity of their legislative consolidation is grounded in order to ensure the fulfillment of financial obligations by the partners of the partnership, the enhancement of the development of partnership relations between the state and business in the perspective.

Published
2019-09-28