Dluhopolskyi Oleksandr

Ph.D. in Economics, Professor of Economics Department

dlugopolsky@mail.ru

Zukovska Alina

Ph.D., Associate Professor of State and Municipal Management Department

Ternopil National Economic University, Ukraine

Public-private partnership versus free pro-corruption markets: Ukrainian experience

In the article the features of using in Ukraine public-private partnerships as a mechanism for preventing and combating corruption, which is done by: providing a transparent mechanism competitions, creating conditions for the development of self-regulatory organizations and the gradual transfer of their functions of government regulation and control, providing information and logistical support to foreign investors, creation in all regions of Ukraine, equal conditions for competition of cities (regions) in the market of investment, particularly foreign direct investment strategy, yielding a high added value, creating special investment regimes in certain areas.

In the article the analyzes the current state of the use of public-private partnership in Ukraine revealed issues of institutional and legislative support to its development, including: the presence of high levels of corruption in the government, leading to the rise of public-private partnerships for the private partner; insecurity receiving private partner from executive or local government permits and approvals necessary for performance of the contract, including a right to use the land necessary for the performance of the contract, lack of confidence in the possibility of a private partner with the state equal protection of their interests in the system justice, in particular, the possibility to require the state obligations and compensation for the losses due to defaults, the lack of guarantees of financial obligations of public-private partnership for the entire period of implementation of the state, which is associated with annual approval of the budget and budget adjustment programs, the lack of tax and customs exemptions for projects of public-private partnership that reduces their attractiveness to private partners for the availability of such benefits for other forms of stimulation of investment activity, the possibility of changes in the regulatory framework, including changes to the tax and regulatory legislation, changes in quality standards (increased requirements) for goods and services provided by the private sector partner for the contract, which may result in a significant change in terms of participation of private partners in projects.

In the article the proposed approaches to public policy, the implementation of which will accelerate the practical implementation of the main forms of public-private partnerships to reduce corruption, including: improvement of the legal framework governing relations of public-private partnerships, improve institutional support for the development of public-private partnerships, increase guarantees protection of public and private partners in the development, approval and implementation.