ROLE OF PUBLIC-PRIVATE PARTNERSHIPS IN REALIZING COMPETETIVE STRATEGY OF THE REGION

Abstract

The importance of state institutions and other public sector organizations and institutions in creating and realizing strategies for increase of competitiveness of the country or region is widely recognized. However, there are still going on active scientific discussions about the forms and degree of impact of such institutions. The influence of the public sector on the increase of competitiveness is demonstrated through public and private partnerships (PPPs), because this form of cooperation creates balance between two extremities – bureaucracy and monopoly (Zarco-Jasso, 2005). The article presents and theoretically substantiates the factors determining successful PPPs seeking positive results in realizing the strategy for the increase of competitiveness. First, there is presented critical analysis of the theories, which served as a theoretical basis for the emergence of PPPs, in the context of changed factors and circumstances determining competitiveness. Further the article discusses various concepts of PPPs and demonstrates the variety of partnerships given the legal form of partners, structural differences, dimensions of publicness and degree of risk sharing. Finally, after identifying some problems encountered in implementing PPPs, based on theoretical research of a number of different experiences in variety of sectors, the article distinguishes factors that are essential for the successful public and private partnerships.