Updating Mechanisms for Cooperation between the State and Business to Stimulate Economic Development

Abstract

Abstract: Public-private partnership (hereinafter referred to as PPP) is one of the most promising tools for the development of the modern economy, which can attract private investment with high efficiency. Such a tool helps in the modernization of infrastructure and, if necessary, improve the quality of services. In addition, in the context of global economic competition, the use of PPP contributes to sustainable development. The purpose of the article is to study the evolution of public- private partnership as a means of ensuring economic growth. The article is also aimed at identifying the main obstacles and obstacles that prevent the successful implementation of PPP and formulating proposals for increasing the effectiveness of the partnership between the state and business. A set of theoretical methods was used, including synthesis, systematization and generalization. A comparative analysis of PPP practices in different countries was conducted. A systematic approach is used to assess the impact of PPPs on the economy. The current state of PPP development is determined and the main problems are identified – lack of transparent procedures and lack of state support. Successful cases demonstrating the positive impact of PPPs on investment and infrastructure development are analyzed. Recommendations for improving legislation and stimulating partnerships are developed. For the effective development of PPPs, it is necessary to introduce transparent project selection procedures that will increase trust and minimize corruption risks. It is important to expand financial incentives for the private sector, in particular through tax breaks and government guarantees. Strengthening the monitoring of project implementation will ensure their timely implementation and contribute to sustainable economic growth.