Journal Article

PROSPECTS FOR THE DEVELOPMENT OF PUBLIC-PRIVATE PARTNERSHIP WITHIN THE FRAMEWORK THE LOGISTIC SYSTEM POTENTIAL FORRMATION OF THE REPUBLIC OF BELARUS

Kuhan Sviatlana

2019

Overview

One of the main problems facing the governments of various countries in the world is to improve the quality of services offered in the sphere of logistics. Demand for these services is growing as the global economy is returning to economic growth after the financial crisis. However, in many countries throughout a long period of time a considerable part of logistics infrastructure did not receive regular and sufficient investments. Investments are necessary for the improvement and development of the infrastructure, and the state, however, must strictly control its expenses in all economic areas and maintain a low level of tax load in the country. The article discusses the issues connected with the strengthening of scientific and practical interest in public-private partnership conditioned by rapidly growing needs for updating and building-up the infrastructure, including a logistics one, and the government’s lack of necessary financial resources for its modernization. Being an effective means of socio-economic transformation, public-private partnerships got a wide distribution, both in developed countries and countries with transitional economies. Many economically developed countries actively use a suchlike option of cooperation which allows to solve the majority of issues in situations when resources are limited. In order to bridge the gaps existing between available public resources and necessary infrastructure and services costs, as well as to ensure the provision of efficient and cost-effective services, Belarusian authorities are inclined to use the option of public-private partnership. Typically, public-private partnerships include the forms of cooperation between state bodies and the private sector aimed at ensuring financing, construction, reconstruction, operation, infrastructure facility maintenance and/or managing it, as well as/or providing services. The use of suchlike option of interaction allows to expand the scope of private capital participation in economically and socially significant state projects making the partnership between the state and business mutually beneficial.

• Publisher: Peter the Great St. Petersburg Polytechnic University
• Subject: contractual obligations / investments / logistics infrastructure / projects / public-private partnership mechanism