Prospects for development of public'private partnership within the framework of potential for forming logistic system in Republic of Belarus

Regional and branch economy

One of the main problems facing governments of various countries in the world is improving the quality of services offered in the sphere of logistics. Demand for these services is growing as the global economy is returning to economic growth after financial crisis. However, in many countries, a considerable part of logistics infrastructure did not receive regular and sufficient investments for long periods of time. Investments are necessary for improvement and development of the infrastructure. The state, however, must strictly control its expenses in all economic areas and maintain a low level of tax load in the country. The article discusses the issues connected with growing scientific and practical interest in public-private partnership due to rapidly growing needs for updating and building-up the infrastructure, including logistics, and the government’s lack of necessary financial resources for its modernization. Being an effective means of socio-economic transformation, public-private partnerships got a wide distribution, both in developed countries and countries with transitional economies. Many economically developed countries actively use this option of cooperation which allows to solve the majority of issues in situations when resources are limited. In order to bridge the gaps existing between available public resources and necessary infrastructure and services costs, as well as to provide efficient and cost-effective services, Belarusian authorities are inclined to use the option of public-private partnership. Typically, public-private partnerships include forms of cooperation between state bodies and the private sector aimed at ensuring financing, construction, reconstruction, operation, infrastructure facility maintenance and/or managing it, as well as/or providing services. Using this option of interaction allows to expand the scope of private capital participation in economically and socially significant state projects making the partnership between the state and business mutually beneficial.