Economic Prospects for Public-Private Partnership in Russia and European Union

  •  Chizhevskaya Elena    
  •  Magomaeva Leyla    


Today, public and private partnership (PPP) is defined as an institutional and organizational union between state and business aimed at implementing national and international, global and local, but always socially-relevant projects in a wide range of economic sectors: from strategically important industries and scientific and research engineering to providing public services. The paper proves that public-private partnership is beneficial for each participant. Its major advantages include: positive social and economic effect; budget funds economy due to private sector funding; managerial and intellectual capital flow from the private sector. However, to secure further successful development of this institute, a number of important issues must be solved.This research offers a systematic approach to implementing projects that provide economic effect from public-private partnership for the EU. Moreover, by analyzing the best foreign PPP practice, major ways of solving complex issues in the Russian Federation were defined.The paper concludes that recommendations for further improvement of PPP implementation and development in Russia should include:-detailed consideration and analysis of all possible collaboration models between state and business at the very project beginning based on constant monitoring;-optimization and increasing supervision over PPP projects’ time limits and costs by establishing independent expertise centers;-creating a single information centre that would accumulate experience and knowledge concerning PPP project implementation, which would attract foreign investors;-improving legislation aimed at increasing legislation quality at federal and regional levels, considering international law standards.

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