COOPERATION BETWEEN BUSINESS AND LOCAL AUTHORITIES: PROBLEMS AND NEW OPPORTUNITIES

Abstract

The article is devoted to the study of the limitations and resources of interaction between government and business in modern conditions, the definition of the most popular and promising forms of cooperation. Based on this survey, the main risks are identified (the need for additional funding from the state, reputational losses in case of project failure or failure to achieve its goals, delays implementation of projects by the contractor) and barriers to the implementation of public partnership practices (lack of opportunities to provide motivation for private investment, business disinterest). It is concluded that the existing dysfunctions of the institutional field do not allow creating a basis for normatively fixed practices of partnership between government and business, and state partnership becomes a utopia for municipalities. The most promising form of interaction between government and business is the economy of cooperation as an effective tool for the socio-economic development of the territory. At the same time, the conditions for the implementation of a new form of interaction between the public and private sectors should be an active and flexible position of local authorities, an analysis of the interests and needs of the business community, and the effective use of state property. The principles of the economy of cooperation can be adapted and used in the context of the socio-economic development of the territories.