Management of the regional economy on the basis of partnership interaction between the authorities and business structures

The article studies the theoretical and practical aspects of the management of the region’s economy on the basis of interaction between the authorities and business structures. The authors prove that partnership is an optimal form of such interaction under the conditions of chronic budget deficit. Partnership facilitates the achievement of strategic goals of the territory’s development and structural adjustment of domestic economy; it also enhances the interest of the parties in achieving successful results of cooperation, and helps attract innovation technology and significant extra-budgetary investments in the economy. In addition, as world experience shows, public-private partnership is an effective tool to remove infrastructure constraints to economic growth, to improve the availability and quality of public services. The article shows that at present the development of partnership between the government and business is hindered by a number of organizational, legal and financial-economic problems and barriers. The authors identify priority directions for regional public policy and propose several measures to use the available potential of cooperation for dealing with territorial development issues.