Public-private partnership as a new form of social responsibility and a mechanism of decentralization of public administration

Abstract

The need to attract resources to socially significant infrastructure facilities, decentralize authority, market orientation of public services, efficiency and competition requires the search for a combination of opportunities for cooperation between the public and private sectors. A public-private partnership has become one of the modern approaches to the implementation of socially important projects. The study identified the degree of impact of the partnership between the state and business, as a mechanism of decentralization of public administration, on the factors of social responsibility. The methodological approach involved the analysis of the existing research on social responsibility of public-private partnership by identifying and comparing key factors of social responsibility; determination of variables that describe them, and conducting econometric analysis of established variables. It is proved that in addition to overcoming the budget deficit, contributing to economic performance, public-private partnership involves social responsibility. The activity of public-private partnerships (private investment in infrastructure projects) is found to have impact on innovation, the environment, health care, the rule of law, and unemployment rates. There is a need to conduct further research with an expanded number of countries and factors that describe social responsibility of public-private partnership.