Investment Activity In Social Infrastructure

Abstract

Social infrastructure is rarely considered the region’s most important manufacturing sector. More often it has a supporting role, the purpose of which is to ensure the functioning of more profitable sectors of the economy. However, the development of social infrastructure can significantly increase the efficiency of the entire economic system due to a quick increase in labour productivity and the number of labour capital. The source of the rapid development of the sectors of social infrastructure can only be the investment process. The main subject of the investment process in the social sphere is traditionally the state. Private investments do not run into the social infrastructure due to the uncertain financial result and mechanisms of interaction with government that continuously monitor this sphere. Nevertheless, investments in social infrastructure are beneficial to the state, population and private investor. To achieve a synergistic effect, an effective mechanism for their interaction is needed. The concepts of "social investments" and "investments in social infrastructure" are defined in the paper, a statement is made about the possibility of efficient use of investment resources of institutional investors in several sectors of social infrastructures. It is proposed to use public-private partnership (PPP) as the main mechanism of interaction between private business and the state with allocation of the most suitable forms.