PUBLIC-PRIVATE PARTNERSHIPS IN FUNCTION OF RAPID ECONOMIC DEVELOPMENT

Abstract

This paper contains a review of the most important characteristics of public-private partnerships, explaining mutual adjustment of public and private sectors goals during the implementation of a particular public project. In addition, this paper outlines the benefits of public-private partnership through redefining government role in economy ensuring the necessary efficiency and productivity in the management of public goods. The author specially noted that for successful development of public-private partnership it is necessary for all stakeholders to be adequately involved in the process and to clearly recognize the possibility of better and higher quality in realization of their own interests by defining the contractual assumptions of risk diversification. The author also points out that in explaining the concept of public-private partnership it is necessary to distinguish between this kind of contractual relationship and the traditional ways of providing public services, privatization and concessions. The circumstances suggest that the experience in strategic merger of public and private sectors in developed countries is positive and that these processes in countries in transition are delayed both in view of legal aspect and application in practice. The author believes that not only the legal solutions but also new procedures and regulations as well as mechanisms for effective implementation of models of public-private partnership will be of great importance for further economic development of the countries in transition.