Bìznes Inform (Oct 2023)
The Use of Public-Private Partnership Instruments for the Post-War Recovery of Ukraine’s Economy
Abstract
The aim of the article is to identify the opportunities and risks of using instruments of public-private partnership (PPP) for the post-war recovery of Ukraine’s economy, which, given the scale of damage and destruction of enterprises and infrastructure, will require significant investments, human resources, and time. Public-private partnership as a process of interaction between the State and the private sector in order to implement certain projects or programs aimed at developing the economy, infrastructure, science, education, health care and other areas has significant potential for ensuring the post-war recovery. The article identifies the main aspects that determine the importance of PPP for the post-war development of the Ukrainian economy, as well as develops the terminological apparatus of public-private partnership and highlights its key elements as an economic category. The advantages of PPP compared to other instruments of economic recovery after the war, especially in the context of promoting a resilient and rapid recovery, include: speed and efficiency; the possibility of attracting private capital; innovativeness; resource management efficiency; stimulation of competition; international support; potential for market expansion; development of local partnerships; significant social impact, and others. A review of the results of the implementation of public-private partnership projects in various sectors of the economy is carried out. The main challenges and obstacles to the development of public-private partnership are outlined. Among the latter, the most significant are: a high level of corruption and a low level of trust of public institutions in the State bodies; insufficient legal regulation and insufficient level of training employees for effective project management. Particular attention is paid to the risks of the PPP implementation in Ukraine and measures that will allow timely identification and overcoming such risks. It is substantiated that the urgent task for the effective implementation of public-private partnership is to create a favorable environment, providing a key factor in attracting investment, promoting economic growth and improving the life of the population. Prospect for further research in this direction is the development of practical recommendations for improving the instrumentarium for evaluating public-private partnership projects in Ukraine.
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