Privatization and Concession as Promising Forms of Interaction between the State and Business: Foreign and Russian Experience

Abstract

The mechanism of public and private partnership has developed in Western countries as a result of socially significant investment projects. It represents a new, liberal stage of state regulation of the economy. This investment mechanism is also possible in Russia, especially in those areas where private investment provides a sustainable vector for the equilibrium growth of the economic system, leaving control functions to the state. Russian regions require various tools to assess their economic potential, socio-economic development, financial balance, and competitive conditions in the domestic and world markets. Such tools ensure an active federal policy and the economic integrity of the country. The authors explored foreign and domestic experience of privatization and concessions as promising forms of interaction between the state and the business. The research employed such standard methods as synthesis, comparison, statistical analysis, systemic and graphical analysis, etc. The article describes the system of public and private partnership in the sphere of social and industrial infrastructure facilities with their fundamental differences, contact points, advantages, and disadvantages. The review showed that concession is the most popular and attractive form of relationship between the state and business in modern conditions, both abroad and in Russia.