PUBLIC-PRIVATE PARTNERSHIP AS A NEW CONCEPT OF ATTRACTING FOREIGN INVESTMENTS

Abstract

The vast majority of developing countries and transition countries, including Serbia, face the lack of their own budgetary resources for infrastructure development, structural economic development, local economic development, development in the sphere of regulation of public facilities and provision of public services, and the like. Due to the livelihood of development funds, these countries are forced to look for other opportunities at their disposal, and are linked to the financing of development and infrastructure needs. It is useful for Serbia to attract foreign investments through public-private partnership, but not at all costs, but in a way that protects the interests of the domestic economy and the protection of national mineral wealth and non-renewable resources from exploitation. Public-private partnerships as the most complex and innovative instrument for fostering economic development have become a regular practice in various sectors of public service delivery. In the last decades of the twentieth century, public-private partnerships in one of the most developed countries represented one of the key mechanisms for resolving the problems of infrastructure, and consequently of the overall development, so that developing countries and transitional countries accepted the practice of the most developed countries. The goal of this work is to highlight the importance of public-private partnerships in attracting foreign investors in solving infrastructure and development problems.