Dimensions of the Efficiency of Public - Private Partnership

Abstract

Efficiency of public administration is recognized as arather broad concept encompassing a variety of areas,therefore instruments and optimal solutions it requiresmust be selected individually for a single case. However,efficiency is always related to application of limitedfinancial resources, minimal organizational costs andefforts in pursue of target results. Despite the limitation offinancial possibilities, needs of society in the context ofglobal and regional changes are constantly growing. Anincreased demand both for quantity and quality of servicesand infrastructure is observed.For complex and permanent modernization of publicsector, a complex strategy of modernization is required(vision, mission, provisions, and concepts of modernization).Partnership is recognized as one of the factors ofinfrastructure development and service efficiency. Thenature of partnership is revealed when the public sectorrecognizes its dependence on other sectors and startssolving governance problems by decentralizing activity.Thus the principle of partnership is consolidated bothvertically (by relating different levels of administration) andhorizontally (inter-sectoral).For efficient partnership three key constituents shouldbe taken into consideration: 1) need; 2) political, legal,administrative environment; 3) communication. Thisenables both the compatibility of natures of differentsectors and development of partnership reaching ultimatesynergy. Precise identification of needs enablespreparation of plans and strategies of actions. Possibilitiesof performance of the latter are limited by political, legaland administrative environment. Communication needs toact in two directions: between partners (internal) andtowards the society (external). Internal communicationstrengthens interrelation and trust whereas the externalone enhances approval of the society for ongoing changes.Partnership can assume a variety of forms; howeverroles and obligations must be clearly defined. It isrecognized that each of the sectors pursues not only commongoals of the project (better quality services, development ofinfrastructure), but personal ones as well: the public sectorlaying its accounts on political and economic benefits,whereas the private one striving for recognition, profit,possibilities for development.Philanthropy from the private sector or governmentbenevolence is not a reliable foundation for a partnership.Central governments decentralize some decision-makingand financial power to local tiers or share them withcommunity members and the private sector.