Public-private partnership: A public sector efficiency improving model in Republic of Serbia

Abstract

Inefficiency of the state and public companies is something we have often talked about. In comparison with private companies, the public sector in many economies is lagging behind in terms of business performance, so it is necessary to encourage the improvement of efficiency and quality of services it provides, also to stimulate investment in technology and modernize production processes and adopt new quality standards. The aim of this paper is to highlight the benefits that may accrue from the mutual cooperation between the two at first sight contradictory sectors. The model of public-private partnership has increasingly been applied in less developed countries, primarily for the infrastructure projects. Despite the benefits that this type of cooperation offers, Republic of Serbia does not use the possibilities of application of this concept, not only because of lack of funds, but also due to many other factors that reduce the competitiveness of its economy.