Экономические науки/15.Государственное регулирование экономики

 

Postgraduate student Mordovets A.V.

Simon Kuznets Kharkov National University of Economics (Ukraine)

Substantiation of the necessity of interaction between state and business entities

 

In modern conditions the actuality of the problem of increasing the efficiency of public administration is significantly growing. It is one of the priorities of the reform of the public authorities. One of the ways to achieve this objective is to optimize the activities of public authorities by reducing the administrative and management processes (which are non-core for government agencies) with improved quality and availability. Thus, improving the efficiency of public authorities’ activity stipulates necessitates the implementation of modern instruments. Positive foreign experience of reforming public administration demonstrates the effectiveness of the adaptation and implementation of the tools (that are widely used in the private sector) in the activity of public authorities. According to W. Olins, "the government adopt the language, methods, system performance, skills, and even, to some extent, the culture of doing business in the private sector" [1, p. 46]. One of the forms of cooperation between state bodies and economic entities is a social and economic partnership, one of the tools for the implementation of which is the outsourcing of administrative and management processes.

The aim of the study is to validate the rationality of the use of modern tools to improve the efficiency of public administration, such as socio-economic partnership, which can be realized by using such a tool as outsourcing administrative and management processes.

At the moment, there is a need to create in the public sector structures, which should be based on a contractual relationship, and be guided in its activities to achieve the expected results, i.e. governance should move from functional hierarchy to cooperation and work closely together with the market sector.

Such authors as O. Grishnova, V. Davydenko, A. Denisenko, V. Miheev,                   A. Polyakov, Y. Shevchuk and et.al. were engaged in the study the issues of interaction between state and business entities.

There are many terms that reflect the interaction between state and business entities: "public-private partnership", "inter-sectoral social partnership", "social partnership", "economic partnership" and others. Such authors as H. Trishkina [2],                 G. Vasilyev [3], G. Ermakov [2], V. Ruban [4], S. Kuzmina [5] interpret this interaction as social and economic partnership. The author of the study agrees with the opinion of the scientists since the interaction of state and business entities is great importance considering interests and objectives of the three subjects of the relationship (i.e. state, business entities and society) in such interactions it is important to take into account the economic aspect.

Thus, social and economic partnership between the state and business entities is a comprehensive administrative, organizational and economic process of interaction of state bodies and economic entities (which are involved if necessary to improve the efficiency of public administration, activization of innovative activity), as well as non-governmental organizations with to aim of transferring the processes that are not effectively implemented by public authorities, to the stakeholders management (based on agreement) while taking into account the economic effect of the transfer of these processes.

An important issue is the delegation of functions (which are non-core for public authorities) for the performance of the private sector. The achieving of  this goal is possible with outsourcing of administrative and management processes. The essence of outsourcing consists of the concentration of government on the basic processes through the transfer of non-core, excessive government functions to be performed by business entities.

Effective implementation of outsourcing administrative and management processes contributes to the achievement of the priorities of the reform of public authorities -  improvement of the quality of administrative processes (due to the transfer of non-core functions to be performed by the organization that specializes in their implementation) and governance optimization. An important issue is the definition of administrative and management processes in the state authorities, which can be outsourced and which can be efficiently fulfilled by the state authorities.

Thus, the presence of public authorities of a significant number of redundant and inefficiently implemented powers reduces the possibility of effective decision-making, reducing the quality and accessibility of public services, so there is a need to reform the activities of state bodies. The achievement of this task is possible with the decentralization of state power at the expense of their transfer to the execution of business entities that can be implemented within the framework of social and economic partnership through outsourcing of administrative and management processes.

 

References

1.                     Olins W. Trading Identities: Why Countries and Companies are taking on each other’s roles. London: Foreign Policy Centre. 1999.

2.                     Ермакова Ж. А. Формы социально-экономического партнёрства государства и бизнеса в регионе / Ж. А. Ермакова, Н. И. Тришкина // Вестник ОГУ. – 2011. – № 8. – С. 40-47.

3.                     Васильев В.Г. Основы формирования социально-экономического партнерства государства и потребительской кооперации по развитию инфраструктуры агропромышленного комплекса: автореферат диссертации на соискание ученой степени канд. экон. наук: 08.00.05 / В.Г. Васильев. – Киров, 2005. – 22 с.

4.                     Рубан В.А. Развитие региона на основе социально-экономического партнерства // Вестн. БГУ. Экономика и право. Улан-Удэ: Изд-во БГУ, 2012. №2 – С. 6062

5.                     Кузьминых С. В. Отношение социально-экономического партнерства субъектов хозяйствования рыночной экономики: автореферат диссертации на соискание ученой степени канд. экон. наук: 08.00.01 / С. В. Кузьминых. - СПб, 1998. - 19 с.