Evolution of Theoretical Approaches to the Analysis of State and Business Cooperation in the Infrastructure Sphere
Authors: Negrych Mykola 
Published: May 2024

The classification of historical periods in the evolution of cooperation between the state and business in the infrastructural sphere by stages and forms of cooperation has been improved: antiquity (use of buyouts; competitive construction of post offices with cities, ports and harbors (manceps); infrastructural construction (precarium)) of the Middle Ages ("casual » application of PPPs; buyouts; concessions; "regalia"); the period of colonization (use of concessions for the development of new land colonies and international trade; involvement of private armed ships with their owners to solve military and trade "tasks" at sea); the origin and development of capitalism, industrialization (systematic concession legislation; capital-intensive projects; attraction of private capital in the form of concessions for the development of the utility sector); the modern stage from the middle of the 20th century. (transition from the policy of "public administration" to the "new public administration" model; "private financial initiative"; development of public-private partnership (PPP) regulation worldwide (in more than 120 countries); launch of cross-border PPP projects and projects with attracting direct foreign investment).

It was determined that in France during the Middle Ages and the reign of mercantilism, the predominant role of the state in economic development, including infrastructure development, was emphasized. The state attracted private business and financed the works. Unlike mercantilists, representatives of the school of physiocrats believed that the state should not interfere in the field of entrepreneurship at all. The idea of state cooperation with private business in the development of industry by means of optimal regulation and protection from foreign competition, especially at the initial stage, was also reflected in the works of the German scientist F. List.

Implementation of projects through the transfer of infrastructure objects under concession conditions to private companies allows to significantly increase their efficiency. The example of the railways of Belgium, Germany, Austria-Hungary and Switzerland shows that this form of PPP is quite competitive during the implementation of large infrastructure projects. At the same time, in order to achieve economic efficiency, such projects must be accompanied by strict state control.

After the Second World War, the doctrine of a socially oriented model and a concerted strategy of economic development (concerted economy) came to the fore in economic thought. The positions of J. Keynes and moderate supporters of state intervention in the economy were dominant until the 70s. 20th century, when the ideas of "state capitalism" reached their peak. It is also necessary to note the role played by the theory of the public sector in justifying the role of the state in the economy at various stages of economic development. The state takes an active role in areas that are not attractive to private actors and are related to the generation of "public goods" to increase the level of well-being.