ADAPTATION OF PUBLIC-PRIVATE PARTNERSHIP MODELS TO SECURITY AND ECONOMIC CHALLENGES AT THE LOCAL LEVEL

Abstract

The article emphasizes that the rapid intensification of global challenges, caused by geopolitical turbulence, macroeconomic shocks and the scaling of digital and environmental transformations, actualizes the need for a fundamental change in the paradigm of public administration by moving from rigid directive regulation to flexible institutional partnerships. A comparative analysis of models of interaction between business entities and local governments (in synergy with state institutions and international donors) under martial law and post-crisis recovery was carried out. Based on a three-dimensional approach, the specifics of the functioning of three types of territorial communities in Kyiv and Lviv regions were studied – Bilogorodska (a metropolitan outpost and containment line), Makarivska (a front-line community that has suffered destruction and occupation) and Stryiska (a rear logistics and industrial hub). It was found that in the Bilogorodska TG under martial law, the stability of the community is ensured by horizontal connections – business is the main donor of the local budget (through the payment of personal income tax and local taxes) and the volunteer movement, while the authorities provide security infrastructure, spatial development and representation of the community at the international level, forming a favorable investment climate even in conditions of systemic military risks. In the Makarivska TG, public-private interaction is reoriented to the plane of post-crisis recovery under the Build Back Better concept, compensation for the deficit of endogenous resources by attracting international donor capital (EU projects, NEFCO) and reducing bureaucratic pressures to prevent the relocation of taxpayers. In contrast, in Stryiska TG, the intersectoral partnership is focused on managing rapid economic growth, capitalizing on security advantages, deploying operational support for relocated businesses, and tripartite synergy (state – business – investor) through the development of industrial parks and systemic retraining of labor resources. It has been proven that effective public-private partnership in modern conditions is a key tool for ensuring institutional stability, spatial revitalization, and economic adaptation of municipal entities.