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Public-Private Partnership: Are There Formulas for Success? – Boeva, B., A. Vassileva, Economic Alternatives journal, Issue 3, 2008

(Article, Economic Alternatives Journal, Issue 3, 2008)

 

Public-private partnership (PPP) is an indisputable component of the structure in the modern national and international economic processes. It implies a particular approach, where the efforts of the state and businesses are joined to settle strategic issues of various significance. In the context of national priorities, the present situation and, above all, the limited resources of this country, public-private partnership constitutes a certain prospect for Bulgaria. The issue is even more interesting in light of the evolving economic conditions and principles of operation of the state and business in the process of integration of this country in the EU. The new rules on state regulation the new practice related to the use of integrated EU financial instruments, which was introduced, require intensive development of PPP practices.

 

The article relies on a pragmatic approach combined with a theoretical comparison with the latest studies by EU authors. It defines the factors for success and failure, as well as the incentives and barriers for efficient public-private partnership. Concrete measures for management of this partnership are specified on the basis of the results from the study of scientific literature, good practices, and field studies. The team holds the view that the inclusion of businesses and universities’ representatives in various fora at central and local government level should be associated not only with principles of democratic governance, but also with the need of efficient utilization of the “knowledge” resource and of coping with what is often defined as “insufficient administrative capacity”. Particular attention is paid to the participation of the state as a partner, rather than as an empowered authorizing officer and coordinator of projects for public goods. Both the empirical data and the answer sought by modern literature reveal a new role of the state and the mechanisms for turning the latter into an efficient partner of private businesses.