Conceptual principles for financial mechanism of public-private partnership

Abstract

The expediency of developing partnership relations between the state and business is grounded in order to improve financing of social and economic infrastructure in Ukraine. The content of the concept of «public-private partnership» is revealed in accordance with the functional, financial, social and legal approaches, as well as its essential components are identified. It is argued that public-private partnership actions and measures are implemented through the financial mechanism, which explores the conceptual aspects of such related concepts as «mechanism» and «finances». On the basis of the analysis of the interpretations of these definitions, the author's definition of the financial mechanism of public-private partnership as a set of financial forms, methods, levers and instruments of organization of financial relations in the field of cooperation between public authorities and the private sector is provided for the purpose of developing, approving and implementing the projects aimed at socio- economic development of a country or a separate territory. The attention is focused on the problems of functioning of the mentioned mechanism in the conditions of economic instability, as well as the need for its improvement with the aim of modernizing the infrastructure, ensuring the sustainable human development and meeting the needs of citizens.