Features of Public-private Partnership Financing as an Economic and Legal Tool for Sustainable Development

Abstract

The economic transition from a market to a social model requires a review of the role of the state and representatives of business structures in the economic system. Various forms of their interaction are becoming increasingly important, the main of which are public-private partnerships aimed at financing, formation, and implementing socially important projects. The purpose of the study is to analyze and evaluate the parameters of interaction between the state and the private sector in terms of improving the socio-economic partnership based on the provisions of the concept of public-private partnership (PPP). To achieve the goal were used such methods: analysis and synthesis; formalization and grouping; systematization and logical abstraction. The practice of the Public-Private Partnership Center of the Republic of the Philippines shows that the rational use of social partnership financial instruments will allow the state to reduce the budget burden, ensure infrastructure development, increase employment, develop private enterprises and improve the quality of goods and services. It is noted that the level of public-private partnership use in the world differs significantly, and therefore requires further intensification of efforts to stimulate its use, including due to the wide range of significant benefits of its use for the economy and the population in particular. Public-private partnerships are becoming increasingly popular as they provide many important benefits. In particular, the opportunity to obtain additional financial resources, including through additional investments, quality projects involving professional companies, open access to innovative technologies, and priority opportunities for the state to direct funds to specific areas. Thus, the direction of further research may be to determine the details of the functioning of projects in the framework of public-private partnerships. It is also important to conduct a pre-investment analysis, check the effectiveness of financing, prepare appropriate recommendations for each project stage.