THE CONCEPT, DEVELOPMENT, AND APPLICATION EXAMPLES OF PUBLIC-PRIVATE PARTNERSHIP

Public–Private Partnerships (PPPs) are an alternative model of public service delivery that emerged as a result of the transformation in the economic role of the state, emphasizing the provision of public services in cooperation with the private sector. Theoretical approaches to state intervention in the economy have historically oscillated between the limited government perspective of classical economics and the expansionary public policies advocated by Keynesian economics. The stagflation crisis of the 1970s undermined the effectiveness of Keynesian demand-management policies and paved the way for the rise of neoliberalism. During this period, factors such as globalization, fiscal constraints, and the liberalization of capital movements accelerated the structural transformation of public administration. Influenced by neoliberal policies, traditional public administration was gradually replaced by the New Public Management (NPM) paradigm, which prioritizes performance, efficiency, effectiveness and competition. This shift strengthened the view that public services could be delivered by the private sector and contributed significantly to the widespread adoption of PPP models. Since the 1990s, PPPs have been implemented in many countries across major infrastructure sectors such as energy, transportation, information technologies, water management, health and education. The preference for PPPs has been shaped by insufficient public resources, the technological and financial capacity of the private sector, opportunities for risk-sharing and access to long-term financing. Today, PPPs have become an important governance and financing instrument for ensuring the sustainable funding and efficient delivery of public services.