FUNDAMENTAL PREREQUISITES IN THE DEVELOPMENT OF «NEW PUBLIC ADMINISTRATION» AND THE APPLICATION OF PUBLIC-PRIVATE PARTNERSHIP MODELS IN THE GLOBAL ECONOMY

Abstract

It was established that based on the analysis of the reasons for the transition to a new model of economic management, including the analysis of the attitude to these issues in the scientific community at various stages of the development of economic theory, it can be concluded that this process had a more complex nature, and it is explained by a whole set factors that can be divided into 4 groups: causes of the world economy; technological prerequisites; scientific prerequisites; political will. The reasons for the growth of the public sector, primarily in Europe, are related to the privatization of many enterprises in connection with the need for state participation in the reconstruction of infrastructure after the Second World War. The low efficiency of the functioning of state-owned enterprises is connected with the state apparatus that has grown, as well as the lack of sufficient sources for investments in infrastructure. Technological prerequisites – the need to involve innovations in the field of infrastructure to bring it to a new technological level by involving new technologies that often appear in the private sector thanks to entrepreneurial initiative, as well as to increase the efficiency of the infrastructure complex and increase citizen satisfaction with the level of services provided. Scientific prerequisites – (a) the scientific base formed over the previous decades, which includes the study of issues of state intervention in the economy and the results of this, previously applied forms of cooperation between the state and private individuals, as well as (b) scientific and social awareness, readiness as a society , as well as the state apparatus based on the understanding of the previous policy of economic management before proceeding to the active application of the PPP model. Political will – obvious problems of public administration, which led to economic difficulties, caused significant politicization of society. Despite the fact that the material basis for the implemented changes were the factors listed above, these changes simply could not have been initiated by anyone without political processes that reflected the scale of the accumulated problems. It is shown that the model of the new state administration absorbed various references and was influenced not only by the theory of public choice and managerialism: it inherited both some elements of its previous concepts (we are talking about «state administration» and «new state administration») and innovations , developed as a result of many years of discussions and analysis. The key elements of the «new public administration» policy are defined as: increasing the «marketability» of public authorities through the creation of professional agencies and their use of the principles of client management and professional hiring of personnel on conditions close to the private sector; increasing efficiency by reducing the number of employees and implementing the assessment of activity results (key performance indicators/KPI system); competitive conditions (holding of tenders) in public procurement; privatization of those enterprises that provided market services and produced market goods; attraction of private capital in those areas that could not be privatized (because they provided services for which the state is responsible) through PPP mechanisms.