Dimensions of the Efficiency of Public - Private Partnership

Abstract

Efficiency of public administration is recognized as a rather broad concept encompassing a variety of areas, therefore instruments and optimal solutions it requires must be selected individually for a single case. However, efficiency is always related to application of limited financial resources, minimal organizational costs and efforts in pursue of target results. Despite the limitation of financial possibilities, needs of society in the context of global and regional changes are constantly growing. An increased demand both for quantity and quality of services and infrastructure is observed. For complex and permanent modernization of public sector, a complex strategy of modernization is required (vision, mission, provisions, and concepts of modernization). Partnership is recognized as one of the factors of infrastructure development and service efficiency. The nature of partnership is revealed when the public sector recognizes its dependence on other sectors and starts solving governance problems by decentralizing activity. Thus the principle of partnership is consolidated both vertically (by relating different levels of administration) and horizontally (inter-sectoral). For efficient partnership three key constituents should be taken into consideration: 1) need; 2) political, legal, administrative environment; 3) communication. This enables both the compatibility of natures of different sectors and development of partnership reaching ultimate synergy. Precise identification of needs enables preparation of plans and strategies of actions. Possibilities of performance of the latter are limited by political, legal and administrative environment. Communication needs to act in two directions: between partners (internal) and towards the society (external). Internal communication strengthens interrelation and trust whereas the external one enhances approval of the society for ongoing changes. Partnership can assume a variety of forms; however roles and obligations must be clearly defined. It is recognized that each of the sectors pursues not only common goals of the project (better quality services, development of infrastructure), but personal ones as well: the public sector laying its accounts on political and economic benefits, whereas the private one striving for recognition, profit, possibilities for development. Philanthropy from the private sector or government benevolence is not a reliable foundation for a partnership. Central governments decentralize some decision-making and financial power to local tiers or share them with community members and the private sector.