Authors

  • Mirobbos Aminov

DOI:

https://doi.org/10.71337/inlibrary.uz.ijai.102787

Abstract

This article analyzes the public-private partnership (PPP) model as a modern tool of state governance. It presents scientific approaches and scholars’ opinions regarding the importance of PPPs in fulfilling state functions, particularly in infrastructure, social services, and economic development, as well as their efficiency and associated risks.

 

 

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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE

ISSN: 2692-5206, Impact Factor: 12,23

American Academic publishers, volume 05, issue 05,2025

Journal:

https://www.academicpublishers.org/journals/index.php/ijai

page 1256

THE ROLE OF PUBLIC-PRIVATE PARTNERSHIPS IN PERFORMING STATE

FUNCTIONS: SCIENTIFIC APPROACH AND DEBATES

Aminov Mirobbos Askar ugli

Lecturer in “Corporate and Business Law” at “ISFT” Institute

Email: mrabbos2023@gmail.com

Tel: +99895-045-44-99

Abstract:

This article analyzes the public-private partnership (PPP) model as a modern tool of

state governance. It presents scientific approaches and scholars’ opinions regarding the

importance of PPPs in fulfilling state functions, particularly in infrastructure, social services,

and economic development, as well as their efficiency and associated risks.

Keywords:

state functions, public-private partnership, social partnership, infrastructure,

efficiency, institutional approach.

I. Introduction

In modern public administration, due to resource shortages, budget constraints, and the growing

needs of the population, the state is compelled to implement new mechanisms in fulfilling its

functions. One such mechanism is public-private partnership (PPP), which represents mutually

beneficial and long-term cooperation between the public and private sectors.

II. Concept and Essence of PPP

Key features of PPPs include:

Pooling of resources: the state and businesses combine their efforts.

Risk sharing: financial and technical risks are divided between partners.

Result-oriented: priority is given to social and economic efficiency.

Prof. Paul Hodge (Oxford University):

“Public-private partnerships are not just a financial

tool — they are a new mode of governance aimed at outsourcing state functions without giving

up control.”[1]

III. State Functions Implemented through PPP

A. Infrastructure Development (roads, bridges, airports)

PPP models are primarily applied in the field of infrastructure.

For example, in Uzbekistan, the “Reconstruction of Tashkent International Airport”

project is being implemented under a PPP model.

Dr. A. Murodov (Uzbekistan, Economist): “Carrying out classical state functions through

private partners allows the state to reduce expenses and simultaneously improve service

quality.” [2]

B. Healthcare and Education

Models involving private partners in the establishment of clinics, schools, and

vocational centers are being introduced.

In the UK, PPP-based clinics exist within the NHS (National Health Service).

C. Public Utilities

Services such as water supply, electricity, and waste processing are implemented in

partnership with the private sector.


background image

INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE

ISSN: 2692-5206, Impact Factor: 12,23

American Academic publishers, volume 05, issue 05,2025

Journal:

https://www.academicpublishers.org/journals/index.php/ijai

page 1257

IV. Scientific Approaches and Debated Aspects
Approach

Supporters

Key Arguments

Neoliberal

Approach

F. Hayek, M.

Friedman

Maximizing privatization of state functions

increases social efficiency.

Institutional

Approach

D.

North,

E.

Ostrom

PPPs won’t work effectively without institutional

coherence and legal guarantees.

Critical Approach J. Stiglitz

Through PPPs, the state avoids accountability,

potentially increasing inequality.

Joseph Stiglitz (Nobel Laureate):

“Not all PPPs are beneficial. Without proper regulation,

they can lead to privatization of profits and socialization of losses.” [3]

V. Risks and Issues in PPPs

Lack of transparency: tenders and contracts are often carried out behind closed doors.

Unequal risk distribution: in some cases, the state assumes the majority of risks while

profits go to private partners.

Political influence: political or clan interests may override public interests.

Prof. M. Nishonov (Legal Scholar):

“PPP contracts must be clearly standardized through

legislation, and mechanisms of accountability must be strengthened.” [4]

VI. Uzbekistan’s Experience

The Law of the Republic of Uzbekistan “On Public-Private Partnership” [5] was adopted in

2019. In recent years, active projects have been implemented in the following sectors:

Education:

subsidies are allocated to non-state schools.

Healthcare:

private clinics are commissioned to provide services on behalf of the state.

Energy:

solar and wind power plant projects are implemented under PPP models.

VII. Conclusion and Recommendations

PPP has become an important tool in fulfilling state functions. However, if not properly

institutionalized, it may lead to consequences contrary to public interests.

Therefore, in PPP projects:

o

risks and benefits should be clearly distributed;

o

strong legal foundations are essential;

o

mechanisms for public oversight and transparency must be in place.

Recommendation:

An independent evaluation institution for PPP projects should be

established in Uzbekistan, and legal provisions should mandate public disclosure of PPP

contracts.

References:

1. Law of the Republic of Uzbekistan “On Public-Private Partnership”, 2019.

2. Hodge P., Public-Private Partnerships and State Responsibility, Oxford University Press,

2017.

3. Stiglitz J., The Price of Inequality, Norton, 2012.


background image

INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE

ISSN: 2692-5206, Impact Factor: 12,23

American Academic publishers, volume 05, issue 05,2025

Journal:

https://www.academicpublishers.org/journals/index.php/ijai

page 1258

4. Murodov A., “Economic Efficiency of PPP Mechanisms”, Scientific-Practical Journal,

2023.

5. Hayek F., The Road to Serfdom, 1944.

6. Ostrom E., Governing the Commons, Cambridge University Press, 1990.

References

Law of the Republic of Uzbekistan “On Public-Private Partnership”, 2019.

Hodge P., Public-Private Partnerships and State Responsibility, Oxford University Press, 2017.

Stiglitz J., The Price of Inequality, Norton, 2012.

Murodov A., “Economic Efficiency of PPP Mechanisms”, Scientific-Practical Journal, 2023.

Hayek F., The Road to Serfdom, 1944.

Ostrom E., Governing the Commons, Cambridge University Press, 1990.