SOCIAL AREA FINANCE

KOZAREZENKO Liudmila

Public-private partnership as a tool for financial regulation of human development

In Ukraine, the development of the social sector, utilities, and transportation infrastructure belong to the functions of the national and regional governments, and maintaining the facilities which support the functioning of the infrastructure is always cost intensive. The required amount of funding often exceeds the possibilities of the national and local budgets, however, it is critical that these issues are addressed, since the development of infrastructure provides direct foundations for economic growth. This is why the government attempts to engage private businesses to achieve its objectives, and cooperate with such businesses on the terms of partnership. The author investigates public-private partnership as a tool for financial regulation of human potential development, analyzes the experience of using public-private partnership in the areas of education and healthcare, and substantiates the need for public-private partnerships in the processes of integration of public and private sectors’ interests for the purpose of developing human potential and achieving socioeconomic well-being in Ukraine. Logical and comparative analysis, analogy, graphical and table methods are applied. It was found out that the use of public-private partnership mechanisms reduces the burden on the state budget, helps to speed up the modernization and renovation of production facilities. In addition, government and business partnership is an important tool for financial regulation of human potential development.

Keywords: human development, financial regulation of human development, public-private partnership, concession.

JEL: H51, H52, L32

KOZAREZENKO L. . Public-private partnership as a tool for financial regulation of human development / L. . KOZAREZENKO // Фінанси України. - 2014. - № 2. - C. 79-93.