Public-private partnership in the agrarian sector: conceptual framework for development

Abstract

The article deals with the conceptual framework for the development of public-private partnership (PPP) in the agricultural sector of Ukraine. The author substantiates the need to reorient the model of agricultural development to the principles of deeper interaction between the State and business, one of the key mechanisms for ensuring which is PPP, which is carried out on a contractual basis to achieve a common goal by combining resources to obtain certain benefits for each participant. The purpose of the study is to develop a conceptual framework for the development of PPPs in the agricultural sector of Ukraine. The study shows a low level of implementation of PPP projects (18 projects out of 193, or 9,3 %) and its rather slow development in our country's economy, mainly due to legislative obstacles. It is substantiated that in the current conditions the issue of partnership development is extremely relevant, since budgetary funds are not enough to implement large-scale projects in wartime. Therefore, involvement of private partners and the use of mechanisms for building long-term relationships with them is essential. The author emphasizes the need for real changes in the implementation of PPP investment projects in agriculture, clarification of the tools for ensuring its development and their adaptation to sectoral issues, which requires the development of a Concept for the Development of Public-Private Partnership in the Agricultural Sector of Ukraine. The study argues that it is necessary to develop a unified approach to the development of PPPs, to determine the priority areas of application of such partnerships and the specifics of its use in solving the problems of agricultural development. The main factors hindering the development of such cooperation are identified and the main objectives of the Concept for the Development of Public-Private Partnership in the Agricultural Sector of Ukraine are substantiated. It is proved that improvement of PPP procedures will help to expand the scope of its application, accessibility, speed and scale of projects, as well as adaptation of such an investment support mechanism to the conditions of wartime/peace time. The article summarizes the main ways of activating PPPs as a mechanism for attracting investment in the reconstruction and development of the agricultural sector of Ukraine's economy. The fulfillment of these tasks will contribute to the revitalization of the use of PPPs in solving the problems of agricultural production development, development of the institutional framework for its implementation in Ukraine, in particular, the adoption of strategic directions for this development in the short and long term. Key words: state, concept, private partner, public-private partnership, agricultural sector, PPP projects, investment resources, development.