Formation of the state-business partnership principles within the new institutional order of decentralization

Abstract

Presented research summarizes the principles of arrangement and practical implementation of the state-business partnership (SBP) projects acquired by the global practice and substantiates their impact on achievement of effective results of partnership between the state and business environment within solution of social economy issues in terms of decentralization. In course of research, the authors used the system and evolutionary approaches, following which the essential understanding of the new decentralized architecture of local government and the institutional order of SBP development is formed to solve urgent economic and social problems of the region. This requires conducting of research integrally with identification of various specific features, direct and reverse connections and dependencies arising in course of arrangement and implementation of SBP projects in the regions of Ukraine. The research matter is analysis of the impact of certain principles on the effectiveness of final SBP project result efficiency in course of arrangement of the state and business capital involvement for its implementation. Practical content shall be determined by the fact that theoretical and methodological provisions, conclusions and practical recommendations constitute a scientific basis for development of a new integral concept on formation of the institutional order of the local state-business partnership arrangement in terms of management decentralization and their practical observance while SBP arrangement. The performed analysis confirms that the degree of compliance with certain principles concerning the SBP projects’ arrangement and implementation significantly affects its efficiency, public perception and creates incentives for dominance in public choice of the Putnam group partner (those caring primarily about public needs), rather than the Olson group (those thinking first of all about their own needs). The mentioned principles facilitate control of the budget funds’ use by civil society, minimize the risks and conflict situations between business and public. Conclusions about the ability of the specified principles of interaction between the state institutions and representatives of business environment to influence the inclusive markets’ potential for enhancement of well-being, innovation and investment in people, thus requiring the state to consider them as critical ones for the economic growth, achievement of well-being for the regional population, especially in the post-war period. Within the new institutional order with inclusive economic and political institutions, SBP development should be organically integrated into the general management system and be completely accountable and transparent. Key words: state-business partnership, business environment, private capital, decentralization, SBP projects, infrastructure, social economy, public control, self-government.