Public Private Partnerships as Common Tool in Globalised Economy

Abstract

The most successful partnership agreements portray the strengths of both public and private sector to establish harmonizing relations. Instead of considering a partnership as a model, it should be considered as a process. Commonly accepted partnerships are in the field of infrastructure, although success is granted in technology partnerships, and sometimes in policy partnerships also. Presented as ? universal solution, partnerships are being implemented in different political and economical environments with ? diverse success rates. Intended for this paper, research has been conducted for two economies of South Balkan (Macedonia and Serbia) with a purpose of identifying current partnership projects and their prospects. As ? novice in the implementation of partnership concept, these countries are willing to start with the widely accepted concession agreements in the field of infrastructure development. Proven to be ? success story, there is a room form for more kinds of partnerships agreements.

This paper discusses recent changes evident in improved cooperation between public and private sector in realization of complex projects as the main characteristic of present-day worldwide economies. The creation of new, innovative agreements is driven by ? globally identified problem: limitation of public funds and ever-growing demand for increased quality of public services. One of the forms for solving of this problem is the Public Private Partnership (PPP) as a common tool that can find application in all economies, regardless of the level of economic development. Public private partnership was identified as an alternative to the traditional public sector procurement that could be seen as one component of the rearrangement of the public sector, consistent with cost recovery and achievement of value for money.

Governments, globally, have expanded an experience and proficiency in increased involvement of the private sector in the procurement of public services. The fundamental reason for introduction of ? partnership is that both sectors have particular positively correlated characteristics that could jointly facilitate more effective provision of public services.