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partnership is defined as a full-fledged replacement of privatization programs



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MONOGRAPHY Social and Economic Development (3)


partnership is defined as a full-fledged replacement of privatization programs, 
which allows to realize the potential of private entrepreneurial initiative, on the 
one hand, and to maintain control functions of the state in socially significant 
sectors of the economy, on the other. From the point of view of V. Varnavsky, 
public-private partnership is an institutional and organizational alliance between 
the state and business in order to implement national and international, large-
scale and local, but always publicly significant projects in a wide range of areas: 
from the development of strategically important industries and R&D to the 
provision of public services. 
At the same time, the term “alliance” does not accurately reflect the 
essence of public-private partnerships. In the “Modern Explanatory Dictionary 
of the Russian Language”, an identity sign is put between the terms “union” and 
“community”  (). D. Amunts proceeds from the mentality of modern Russian 
society, in the consciousness of which the interpretation of the essence of 
public-private partnership as an alliance (union, close connection) will be 
associated with the “fusion” of the state (power) and private capital. In his 
opinion, public-private partnerships are a specific, various form of interaction 
between the state and the private sector in the economic sphere (Амунц, 2005). 
A fundamental feature of such cooperation is the balance of interests, rights, and 
obligations of the parties in the process of its implementation. 
E. Korovin understands public-private partnerships as “medium-term or 
long-term cooperation between the public and private sectors, within the 
framework of which political tasks are solved by combining the experience and 
expertise of several sectors and sharing financial risks and benefits” (Коровин, 
2006). 
The interpretation of public-private partnership proposed by A. Zeldner 
(Зельднер,  2010) is also relevant. In theoretical terms, partnership is an 
independent economic category. As an economic category, partnership reflects 
production relations, in fact, relations emerging in the process of production, 
exchange, distribution. From a national perspective, the formation and 
 



development of public-private partnerships should be considered as a process 
that forms a tolerant relationship between the state, business and civil society 
institutions aimed at achieving socio-economic stability and national security. 
At the same time, the most important function of public-private 
partnerships is the participation of partners in the integration scheme for creating 
final products and in the production chain for creating added value. This makes 
it possible to take advantage of all the advantages that the integration and 
cooperation process itself provides, which, due to the addition of forces and 
means, reduces the risks of each of the partners in public-private partnerships, as 
well as the synergistic effect that arises in the partnership process. 
The models and structure of public-private partnerships are diverse, but the 
“classic” characteristics of public-private partnerships are: 
- economic efficiency 
- the scale of the public-private project for the economic development of 
the region of its implementation 
- implementation of a project without state participation is unattractive to a 
private investor 
- high multiplier effect 
- the role of a “catalyst” for the development of the industry 
- ensuring an increase in budget tax cash flow due to the development of 
the economy of the territory 
The fundamental features of public-private partnerships that are of most 
interest to business are the pooling of partners' contributions to achieve common 
goals and the distribution of costs and risks between the parties in public-private 
partnerships, as well as participation in the use of the results (Халикова, 2009). 
From the perspective of the organizational mechanism, public-private 
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