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Государственное управление 2.Современные технологии управления

S. IAROMICH,

professor of department Management of Organization Odessa Regional Institute of Public Administration of the National Academy of Public Administration, Office of the President of Ukraine

L. Prikhodchenko,

professor of department Public Administration and Local Self-Government Odessa Regional Institute of Public Administration of the National Academy of Public Administration, Office of the President of Ukraine

O. DIDENKO,

competitor of department Management of Organization Odessa Regional Institute of Public Administration of the National Academy of Public Administration, Office of the President of Ukraine

FORMATS AND MODES OF INTERACTION OF PUBLIC AUTHORITIES AND BUSINESS ASSOCIATIONS

Active Ukraine's integration into world institutions of post-industrial society, of political and administrative reforms and modernization processes associated with them, encourage to improve the traditional mechanisms of interaction between public authorities and business associations. This is because the historical tradition of the ruling of the state over the other areas of business and social activity, unformed legal framework and informal relations between public authorities and business associations have a negative impact on the socio-economic and political development of our country, blocking the process of civil society institutions. In addition, the solution of socio-political issues is an integral part of economic development in which the leading role is played by business associations. It provides a natural basis for mutual interest and mutual responsibility: the state is a direct political actor of business processes, and the business associations is a major player in the social and political spheres.

With major resources, business associations have a tremendous opportunity to realize their aspirations in the economic, legal and social spheres. Thus they are able to influence on the reduction of the negative effects of excessive regulation, which is an essential feature of the public authorities. Therefore, analysis of the opportunities and the risks that arise in the development of the best ways to implement them, is a key aspect of the study of relations of business associations and public authorities. It should be noted that to address the issues of cooperation between public authorities and business associations should be used with public-management approach, because thanks to its use can be traced the relationships and identify mechanisms and technologies of this interaction.

In our opinion, the public authorities and business associations are the basic functional and structural components of the social system. It is relatively independent institutional complexes (T. Parsons) [5] or institutional field (Bourdieu) [1] or institutional matrix (V. Markin) [4], which absorb many institutions. Each of them has its own purpose: for government institutions

it is improving the public life, the preservation and transition to a qualitatively new level of development. To realize these goals there created a state mechanism, and the relevant public authorities and civil society institutions which are involved. Regarding the business associations, it is a usual thing - to meet specific business needs. Accordingly, the performance criteria are also different: stable operation and harmonious development of society - for public authorities, and maximizing profits for future business development - for entrepreneurs.

Thus, the conflict potential of the relationship of the public authorities and business associations being already laid down in the basic structures of the organization at the institutional level. Further, the transition to other levels: conflict of interest grows, acquires its specificity and subjectivation of the actions of specific actors (like civil clerks and local government officials, as well as the owners and managers of businesses).

According to Bourdieu's the subject will be understood as an actor, then his typology is quite applicable to the analysis of cooperation between public authorities and business associations which are presented in Table 1.

Table 1. Interction between Public Authorities and Bussiness associations

Actors

Public Authorities

Bussiness associations

Primary

(non-personal), operating within the format and mode of interaction

Efficient regulation

Satisfaction of social needs and gaining the profit

Secondary (personalized), operating at all levels of interaction (formal and informal), using gray and black technology o interactions

Civil servants and local government officials which develop, adopt and implement management decisions (the desire to spread their decisive influence on all aspects of society, including business)

Owners of business enterprises, stakeholders and managers (gaining maximum profits)

In public management the concept of "interaction" is widely used in regulations and in practice. However, despite the fact that it has long been introduced in the scientific circulation, quite explicitly formulated. Therefore, we believe that there is an urgent need for a detailed analysis of this definition, from a methodological point of view, as being a process and forms of dialogue, because dialogue forms of interaction are the basis of the state-management. An administration not only provides a practical, organizing and meaningful impact on the management object, but the object management more actively uses feedback tends to attract, develop and participate in decision-making and implementation of public control over the activities of public authorities using public funds. That is, at a qualitatively new level of combined potential is to be solved not only in the public and in the civil public sector, but in the private one for solving top keys of socio-economic and cultural problems.

This acquires the research using the methodological tools of synergy, of systematic approach, and developments of the theory of social networks and the new institutional theory and so on. After all, they are the benchmark for determining the direction of the restructuring of the national system of public administration with regard to European integration of the country [6].

Interaction between the authorities and the public, which is a kind of social interaction, can be seen as dialogical in the nature, just as the concept of "dialogic interaction" most accurately reflects the essence of the process of joint action of actors. Theoretical analysis of the interaction between the authorities and the public, enabling us to define interaction as the interaction, followed by communicative and perceptual processes which are dialogical in its version and specifies the presence of autonomous entities with relatively equal resources which have psychological readiness and culture of dialogue.

In order to be within frames of the state-level management approach highlight cooperation between public authorities and business associations we propose to define the criteria due to which to be performed the following analysis:

• format of interaction, which is reflected primarily in the whole entire laying;

• mode of interaction, which is in the process goal-gaining;

• interaction mechanism, which is a system of administrative actions, including the assessment of the effectiveness of interaction;

• technologies that are being proven procedures of actors with goal-gaining within a certain interaction mechanism.

The format of cooperation between public authorities and business associations takes place at the most general level that is at the regulatory framework. And there are enough open, legal, pervasive, impersonal (formal) ones which are the most balanced. Balance is built in the most general legislative and regulatory instruments (Constitution of Ukraine, civil, labor and other codes and laws).

Mode of interaction is carried out at the institutional level of the interaction of public authorities and business associations. This level is also open, legal, total, impersonal. The balance of the relationship can be broken because of the natural conflict of interests of the participants interaction. Accordingly, such a conflict can have both latent and open nature, but always formal, non-personal. Hidden Conflict of Interest primary actors is that the government "being protected" of adjusting, but by the of law Parkinson: "seeks to total submission of its decision for everything, business is also due to protection by the function to meet any public need, but its main goal is not changing and is to obtain maximum profit.

The mechanism of interaction, which is a system of administrative actions, including the assessment of the effectiveness of interaction due to A.L. Polezhaev includes "a set of principles, forms and methods which define the business relationships between business associations and public authorities" [5]. In summary, we can provide formal to informal mechanisms of interaction between components of business associations and the public authorities (shown in Table 2) and indicate their positive and negative accompanying factors.

Technology of governance as being one of the manifestations of social technologies that directly reflects the management processes at the present stage of the state building, has been designed to combine scientific knowledge and practice of public authorities. In fact, it should help "... systematic combination of scientific knowledge and best practices, management needs and public interests, goals and functions of government, as well as features and elements of management in order to achieve high efficiency and effectiveness" the functioning of government [2, c. 108 - 110].

Table 2. Mechanisms of Interction between Public Authorities and Bussiness associations

Accompanying components	Interction Mechanisms
Factors	Formal	Informal
Positive	Setting goals, goal-gaining, management and evalution of the effectivness of calloboration, open and transparent relations, social responsibility, trust advisory councils	Trust, lobbying, personal responsibility
Negative	Blending of lending of Bussiness and government	Corruption, bridery

Each activity has its own technology and a sequence of operations being performed. That is, the starting position is that the technology is well-regulated and orderly structured form of implementation of state functions (coherent) that lead to qualitative changes of the object, the desired product management, use of which will satisfy the people and meet the efficiency of public administration .

The essence of this technology is the orientation to ensure objective and subjective conditions in which such a combination allows to achieve the purposes for which organically combined national and personal interests. Due to our research there are public and private interests. Therefore, the following types of technology cooperation between government and business could be emphysized:

• socio-organizational (impersonal);
• social and personal (personalized).

Interaction at the level of secondary actors - personified representatives of public authorities (officials and civil servants) with business associations (founders, business owners and managers) is taking into account different levels of interaction. Secondary actors "play" on weaknesses (that is gaps and contradictions in the legal framework, institutional conflict, and conflict of interests of primary actors). This maximizes the conflict level relationships because it is informal and personalized: the specific people from both government and business side conflict and seek ways of interaction. This level may contain significant favoring corruption, semi-legal and illegal components, and also an open conflict of interests of certain persons.

So, to summarize, we note that the real action of the business associations and the public authorities considerably differ from those principles upon which the mechanism mode and the more - from interaction format. In particular, the interaction is based not on legal grounds, but rather on personal arrangements, agreements based on shady relationships, etc., which then become the basis of official documents. In addition, there are both default and double game (business - hiding taxes, government - inefficient use of resources). If a conflict relationship of public authorities and business associations are not resolved in the format and mode, it is usually possible to have dug and sharp turns at the mechanism, ie at the level of specific interest functionaries (officials and business managers) becomes corrupt. This path is a dead end for the development of Ukraine itself and for its full-scale entry into the international community, which imposes increasingly stringent requirements for transparency in government and business relations. So the best solution would be a clear regulation format (goal-planning) mode and mechanism (goal-gaining and specific situational forms of interaction), all of which promote transparency of Technology (cooperation procedure).

Especially clearly positive and negative factors accompanying mechanisms of interaction between business and government are manifested at regional and municipal levels, which formed the universal and unique structural and functional models of this interaction and their resource provision. In fact, we can identify the following main factors of cooperation between public authorities and business associations in the region:

• legal, having common-framing format: often it contains contradictions (discrepancies of national, regional and municipal formats);

• political and administrative, which comes naturally from the federal structure of the state and includes the conflict between the interests of regional and municipal authorities and extraterritorial trajectory of business (it is aimed at going beyond the specific area on the national and world stage);

• fnance and Economics, which is represented by a national format control relationships and reflects the contradiction between taxation (government interest) and profit (business interest);

• social and labor that is to provide employment, formation of the middle class (the contradiction between the government's desire to solve the employment problem by targeting business enterprise unprepared workforce and the desire of business to get "prepared" skilled workers, which eventually leads to undue migration and a significant reduction of the workforce);

• social infrastructure, which provides a certain level and quality of life: having contradictions between the government, which seeks to solve business through the development of social infrastructure and improving the quality of life and business that believes this trends for its non-core activities because it pays taxes and provides the employed part of the population;

• complexity of civil society: socially responsible business is a specific institution of civil society, then the contradictions in the relationship make shorter not only due to their transparency and mutual social responsibility, but also cooperation with other civil society institutions. That is, the rules have produced with the direct participation of both the government authorities and market agents, especially multinational companies and social movements and NGOs and traditional social institutions. Accordingly, the rule change should not take place outside the public policy.

• innovation development: the integration of social space business in a variety of social fields of contemporary society through its relationship with the institutions of public power is a necessary condition of economic production innovation.

An innovative economy is a top priority of the state policy in Ukraine, and for business use of modern technology - a significant competitive advantage. Innovations emerge as:

• indicator of the effectiveness of collaboration between business and government, as expressed in the economic growth of the municipality, of district, of city and of the Federation;

• area management in the interaction between government and business (this is constructive cooperation in the development and implementation of regional innovation policy focused the development of innovation, introducing new models adopting innovative solutions to minimize the risks of innovation);

• base ideological unity in the interaction between government and business;

• marketing tool in the PR-promotion of successful cooperation between government and business (favorable innovation climate and investment environment will have a significant impact on the image of the region and support local producers);

• tool competitive system of interaction of government and business in international markets.

The effectiveness of the above mentioned types of innovations in the interaction between government and business is largely dependent on the public-private partnership arrangements for social dialogue between public authorities, businesses, involving academic and non-profit organizations.

Implementation and development of innovation is a versatile recipe of successful cooperation between the state and business. So, this cooperation will always be mutually beneficial and successful. In turn, innovative resources of the region can be used only if the parties involved in the innovation process will be set up to develop common rules.

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