PUBLIC-PRIVATE PARTNERSHIP AS A MECHANISM OF REGIONAL DEVELOPMENT REGULATION

Abstract

The article investigates the influence of the institutional mechanism on the interaction between state and business in the process of public-private partnership projects implementation. The indicators of regional joint project effectiveness and methodology for assessing social economic efficiency are provided. The model of partner interaction between the state, scientific institutions, educational establishments, business and society on the basis of public-private partnership in terms of innovative development of the state and regions for the purpose of technological development, formation of industrial and social infrastructure taking into account interests and active support of business at an effective use of state property and budget funds of all levels for stimulation investment activity was proposed. The authors determined that the use of public-private partnership as a mechanism for implementing a new regional policy will make it possible: to attract additional resources for modernization; to reduce the burden on the budgets' expenditures; to attract financial resources to the nonprofit investment projects; to redistribute risks and strengthen the responsibility of public-private partnership participants for the implementation of social and ecological projects. The following activation measures at the regional level were proposed: financial decentralization of governance in order to delegate more opportunities to solve their own problems to the regions; direct participation in social projects financing; ensuring of the proper organizational, economic and legal framework in the sake of the activities effectiveness and protection of partnership participants. The directions for the development of tools necessary for the implementation of projects at the regional level for effective cooperation of state authorities with civil society institutions were proposed.