Public-private partnership in healthcare and pharmaceutical sector of the Republic of Kazakhstan

Mansur Badaev

doi:10.52566/msu-econ.8(2).2021.45-55

Abstract

Interaction between the state and business is one of the main ways to solve the social problems of modern states. The relevance of the subject matter is conditioned by the fact that the development of forms of public-private partnership provides an influx of investments from private entrepreneurs in the field of healthcare and pharmaceuticals in the Republic of Kazakhstan. The purpose of the study is to define the public-private partnerships and analyse international experience in implementing practises on specific projects. The methodological basis of the study consisted of the following methods: system, structural and functional, institutional, monographic, forecasting, tabular and graphical. In the course of the study, the theory and practise of public-private partnership in the healthcare and pharmaceutical sectors, the signs and principles of such partnership were considered. The classification was carried out, the most striking examples of the implementation of public-private partnerships were analysed. The differences between public-private partnership contracts were investigated, and attention was paid to the functions and content of such contracts, including the terms and expected risks. The advantages for each of the stakeholders in the public-private partnership were analysed: the private sector, the public sector, and consumers. The analysis of the current state of public-private partnership in the field of healthcare and pharmaceuticals in the Republic of Kazakhstan was carried out. The practical significance of the study lies in the development of recommendations for improving the forms of public-private partnership for the authorities to maintain state control and comply with the conditions for an adequate distribution of all risks, responsibilities and benefits among the participants of this type of partnership

Highlights

The concept “public-private partnership” (PPP) and “private-public partnership” may have different connotations associated with emphasising the status of the parties to the partnership
If there is a need to reflect the institutional participants of PPP, the researcher can apply any variant of the phrase to denote this phenomenon without losing scientific correctness
In any case, it should be borne in mind that the concept “public-private partnership” is generic in relation to the concept “municipal-private partnership”

Summary

Introduction

The concept “public-private partnership” (PPP) and “private-public partnership” may have different connotations associated with emphasising the status of the parties to the partnership. The detailed content of the concept of PPP is contained in the “UN Millennium Declaration” of 2000 [2] and in the doctrine of the “Monterrey Consensus” of 2002 [3]. These documents state that PPPs are measures of public infrastructure aimed at sustainable development, through project financing and implementation using private investment and on the terms of transferring risks from the public sector to the private sector. In the United States, the term “public-private partnership” (PPP) is mainly used as a denotation of joint state and private financing of educational programmes, public utilities, urban renewal, territorial infrastructure development, and social services [4]. For the successful implementation of the “public-private partnership”, it is necessary to define specific state requirements, which will significantly reduce energy and economic resources [4]

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