Assessment Of The Efficiency Of Investment Activities On The
Development Of The Public-Private Partnership
Ataniyazova Maqsuda
1
Tashkent University of Applied Sciences, Gavhar Str. 1, Tashkent 100149, Uzbekistan
maksudaataniyazova81@gmail.com
https://doi.org/10.5281/zenodo.10467660
Abstract:
The paper studies directions for improving the efficiency of investments in developing public-private
partnership in the service sector and improving the activation mechanism of investment tools for
developing public-private partnership in the sector. At the same time, the article reveals the ways to
increase the effectiveness of investment policy, the formation of investment funds in the service sector,
investment methods and tools for the development of the service sector based on public-private
partnership, the network structure of economic entities in the service sector within the framework of the
state investment strategy, mechanisms for determining their effectiveness, social methods of ensuring the
participation of the private sector in the management and financing of critical strategic projects and some
limitations of the introduction of the mechanism of public-private partnership, criteria for systematically
identifying and classifying state risks, and effective ways of introducing the mechanism of public-private
partnership have been researched.
Keywords:
private sector, public-private partnership, investment, economic efficiency, investment tools
1 INTRODUCTION
The development of economic sectors
implies the formation of mechanisms for providing
and supporting investments and improving the system
of evaluating the effectiveness of investment projects.
Implementing investment policy in the field should be
aimed at increasing the efficiency of using financial
resources allocated to enterprises in the production
sector. Also, the main measures should promote the
development of the institutional framework of
investment mechanisms and the introduction of
modern financing technologies for the highly effective
use of budget and attractive financial resources.
The measures adopted in various regional structures,
networks, and spheres of activity can be divided into
three main directions: controlling financial flows,
controlling the market through price management
(regulation), developing various programs, and
organizing funds. Under these conditions, improving
the investment policy carried out at the state level is
complicated due to differences in the approaches to
regional development and increasing the efficiency of
the activities of individual service sectors.
One of the critical tasks facing the economy is the
effective use of financial resources to solve the
problems of ensuring economic growth in the future.
This is one of the strategic goals of ensuring the stable
development of business entities operating in the
service sector by increasing the investment
attractiveness of our country's economy and increasing
the volume of the gross product created in the sector.
Implementation of investment activity is essential for
ensuring macroeconomic stability and efficient use of
resources.
Currently, in solving existing financial problems, the
volumes of production and product realization, the
limits
of
commodity
flows
are
determined
independently. In the future, it is reasonable to develop
targeted state programs to reduce the negative
development trends in this direction. At the same time,
a coordinated organizational structure should be
established, and it should enable the formation of a
single legal, information-analytical, organizational,
and investment environment in our country and
determine current trends in each region and economic
sector of the country.
The development of economic sectors implies the
formation of investment and support mechanisms and
the introducing of the public-private partnership (PPP)
mechanism in this process. Implementation of
investment policy should be aimed at the effective use
of financial resources allocated to enterprises in the
production sector. Also, the main measures should
promote the development of the institutional
framework of investment mechanisms and the
introduction of modern financing technologies for the
highly effective use of budget and attractive financial
resources.
2 LITERATURE REVIEW
Formation of investment funds, conceptual
foundations of public-private partnership, monetary
policy, directions for achieving the fastest growth of
household
incomes
by
encouraging
private
investments, problems related to the conditions for
using the economic functions of the state for the
formation of a competitive environment J.M.Keynes
[6], Y.A. Schumpeter [7], J.K.Galbraith [8],
K.
A.Froot & K.Rogoff [10] was highlighted in the
centuries.
Ensuring the participation of the private
sector in the management and financing of strategic
projects of social importance, the formation of the
system of economic relations between the state and the
private sector, the economic nature and content of the
category "public-private partnership", goals and
objectives, structure and models, between state and
private business entities the main directions of
economic activity, sources of attracting financial
resources for the implementation of forms of
cooperation between the state and business, state and
public property objects, as well as ways of
implementing socially significant projects in a wide
range of economic activities, its advantages, public-
private cooperation in the service sector research on
the primary forms of partnership, the role, principles
and factors of public-private partnership in the system
of public and private sector interaction O.A.
Romanova [13], E.D. Frolova [14], V.A. Kabashkin
[12], U.I. Djumaniyazov [11], L. Sharinger [15], E.M.
Styrin [2] were studied.
3 RESEARCH METHODOLOGY
In the process of research, the scientific basis
of the methodological approach to the development of
public-private partnership in the conditions of the
transformation of the economy, the implementation of
public-private
partnership
projects,
the
main
directions of public-private partnership in the service
sector, restrictions on the introduction of this
mechanism, the formation of criteria for the systematic
identification and classification of public risks a
dialectical, systematic and scientific approach to the
study of economic systems and ratios, comparative
and comparative analysis and grouping methods were
used.
4 ANALYSIS АND RESULTS
Improving the efficiency of the investment
policy includes:
−
Improvement of the legal framework for the
development of business activities in the service
sector;
−
increasing the level of employment of the
population and improving the regional investment
policy by increasing the attractiveness of investment
in the sector;
−
formation of financial resources for attracting
investments in modern service industries in the
preparation of socio-economic development programs
of the regions;
−
attraction of foreign investments in the
service sector and development of their insurance
system;
−
improvement of the system of distribution of
foreign investments according to promising directions
of development of service industries.
Accordingly, it is essential to improve the
forms and methods of financial support for investment
activities in the service sectors and industries of the
Republic of Karakalpakstan and to research the
specific laws of its regulation by the state. Forming a
new system of regulation of service delivery processes
and their financing will create an opportunity for
business entities operating in the field to achieve
strategic goals and objectives of development.
The development of economic sectors and
sectors in the republic implies the formation of
investment and support mechanisms and the
introducing of the PPP mechanism in this process.
Implementing investment policy in the field should be
aimed at the effective use of financial resources
allocated to enterprises in the production sector. Also,
the main measures should promote the development of
the institutional framework of investment mechanisms
and the introduction of modern financing technologies
for the highly effective use of budget and attractive
financial resources.
Table 1
Investments in fixed assets
Billion sums
Territories
2015
2020
2021
2022
Republic of
Uzbekistan
44810,4 210195,1 239552,6 266240,0
Republic of
Karakalpakstan
6021,2
7089,8
8110,7
10254,0
Andijan
1956,5
9622,6
11176,6
14339,8
Bukhara
4075,9
12183,9
20528,3
21638,3
Jizzakh
1304,9
12545,4
9233,6
10373,9
Kashkadarya
5894,7
20557,6
17359,1
16012,8
Navoi
1809,1
15688,4
15020,1
17958,1
Namangan
2227,5
12007,2
12982,0
14775,1
Samarkand
3237,2
14656,4
15641,6
18917,1
Surkhandarya
1843,6
10068,2
12037,8
11569,4
Syrdarya
1083,3
7191,9
8051,8
12354,6
Tashkent
4428,1
21148,6
28113,6
35767,7
Fergana
2542,3
11040,0
12625,2
15419,3
Khorezm
1531,5
5391,8
8292,0
8769,7
Tashkent city
6854,6
50371,3
58172,7
56847,9
Nowadays, Uzbekistan is facing an increase
in the share of investments in fixed assets. In the last
five years, investments increased almost twice (Table
1). The highest increase rate was in Andijan,
Samarkand and Fergana regions.
The central aspect of using investment
resources in economic sectors, the portfolio, is the
ability of their enterprises to invest.
It is necessary to determine the conditions for the
scope of existing investment projects for the sector's
enterprises and the region's and districts' entire
economy. These conditions are taken into account in
the development of investment strategies for its
development and in the research of problems of
investment methods and tools for developing the
service sector based on PPP.
However, the investment strategy has a functional
description. It is necessary to distinguish the main
directions of investment activity of service enterprises.
It is also necessary to evaluate their effectiveness and
the achievement of positive or negative synergistic
effects in different areas of this activity.
As a source of investment funds, there can be budget
resources of all levels, own funds of enterprises, assets
of the investor community (investment funds,
insurance companies, non-state pension funds),
foreign investments, loans, and PPP funds (Fig. 1).
Fig. 1. Formation of investment funds
At the same time, the leading investment
methods can be off-budget financing, state financial
resources, self-financing, investment tax credits,
property rental, bank loans, leasing, etc.
Investment activity begins with appropriate
projects representing the development of the field of
knowledge, representing the theory and practice of
development and implementation of investment
processes.
Traditionally, the effectiveness of a PPP
project is assessed in the following areas:
• comparison of the profitability of project
implementation with and without the involvement of a
private partner;
• identification of types of risks for the
implementation of a PPP project, their assessment and
determination of the form of risk management;
• detailed economic justification for PPP.
The most significant risks for the state are:
• technical errors at the stage of developing a
project for the procurement of material resources;
• choice of an irrational form of public-
private partnership;
• dishonesty on the part of the private partner;
• The services provided to consumers by the
private partner are of low quality.
The totality of risks for a private partner can
be divided into four large groups:
1. Risks caused by the activities of
government authorities.
2. Risks associated with the state's
participation as a partner in public-private partnership
projects.
3.
Business
risks
of
public-private
partnership projects.
4. Risks associated with protests by the
population, public and international organizations.
The strategic management of investment
activity in enterprises implies the formation of an
investment portfolio in the process of tactical
management of this activity in the future. Forming an
investment portfolio, different from investment
strategies, is a medium-term management process
carried out within the framework of strategic decisions
and the current financial capabilities of economic
entities. At the same time, the tactical management of
investment activities will have its detailed final stage
in the operational management of the implementation
of individual investment programs and projects.
Within
the
state
investment
strategy
framework, monitoring the network structure of
economic entities in the service sector and their
efficiency assessment is envisaged. The general
development strategy of the region is the basis for
forming such a strategy. Exogenous, endogenous and
institutional factors affect the development of these
entities.
Creating and implementing an economic
development strategy forces local and self-governing
bodies of state power to influence internal and external
factors. This situation helps to develop policy models
for managing the activities of industry enterprises.
The two main goals of the country's
development strategy policy are to increase the
competitiveness of the overall economy and eliminate
uneven development between entities. Increasing the
investment attractiveness of regions in the Republic of
Karakalpakstan is essential in ensuring economic
development in line with their industry characteristics.
5 CONCLUSIONS
The specific feature of using investment tools
is the availability of various sources of information.
Thus, it is possible to clarify the goals and tasks of
managing the investment attractiveness of enterprises.
Therefore, one of the most effective methods of
managing investment attractiveness is the strategically
Investment
instruments
Funds of state
and local
budgets
Own funds of
economic
entities
Bank loans,
leasing, property
rent, tax credits
Domestic and
foreign
investments,
public-private
partnership
funds
Funds and
savings of the
population
Funds of
investment funds
important choice of the optimal content and form of
information presentation.
In the context of the transformation of the
economy, ensuring the participation of the private
sector in the management and financing of strategic
projects of social importance has a special place.
Studies show that the PPP project management
mechanism increases the efficiency of public sector
activity and creates conditions for profound quality
changes.
The changeability of the project and the
price-quality ratio are inextricably linked. Although
the financial evaluation of this ratio is complicated, it
should be considered when determining the project's
total cost. It follows that long-term projects are
specific to PPPs. On the contrary, if it is not possible
to accurately calculate long-term projects or projects
with rapidly changing technologies, it is easier to
implement them within the framework of PPP.
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