Life cycle contract as a mechanism for updating the infrastructure of the constituent entities of the Russian Federation

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ILYA A. KOVALEV^а

^аAutonomous Non-Profit Organization ‘Social Investment Agency’

DOI: 10.22394/2070-8378-2019-21-6-60-65

Abstract:
The interaction between the public and private sectors is becoming increasingly important under the conditions that characterize the current economic trends in the Russian Federation (international sanctions, the tasks of privatizing attractive Russian companies, the trend to attract business instead of state unitary enterprises, the need to modernize social infrastructure in the regions). The dependence of the national economic system of the Russian Federation on external factors, as well as susceptibility to systemic economic crises increase the overall degree of vulnerability of national business and suggest the activation of existing state institutions in order to directly support and stimulate investment and entrepreneurial initiatives. In these circumstances, one of the most successful and relevant to modern realities forms of stimulating investment and entrepreneurial activity is the model of attracting private business to upgrade public infrastructure, which proves its high performance both in foreign countries and in Russia. The article analyzes the features of the organizational and managerial mechanism of interaction between business and the state in Russia, reveals its potential as an institution to stimulate the attraction of private investment in state and municipal facilities. The practice of implementing a public-private partnership model and the opportunities that will help to ensure the interests of private investors were also studied. The article demonstrates the positive results of the implementation of programs aimed at stimulating entrepreneurial activity with the help of these projects. At the same time, it is emphasized that the development of private investment and the business sector in our country is still experiencing many problems.

Keywords:
public-private partnership, private investment, socio-economic development, public infrastructure, legislative initiative

Received:
December 13, 2019

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