CC BY
44PUBLIC-PRIVATE PARTNESHIP IN DEVELOPMENT OF PHYSICAL CULTURE AND SPORT
V.I. Grigor'ev, Honored Worker of Physical Culture of the Russian Federation, Dr.Hab., Professor, Head of Department of Physical Education
V.A. Plotnikov, Dr. Econ., professor, Department of General Economic Theory St.Petersburg State Economic University
Key words: public-private partnerships, public policy, physical culture and sport.
Introduction. Public-private partnerships (PPP) as a form of strategic interaction between government and business, has become widespread in the world. At the same time PPP projects are focused mainly on the implementation in the field of infrastructure for socio-economic development (roads, bridges, tunnels, educational and medical institutions, etc.) [6]. The potential of PPP projects in the sphere of physical culture and sports is used in a much lesser extent, which can also be attributed to the infrastructure sectors of socio-economic system. Physical culture and sport provide human development and contribute to the formation of effective human capital. It is very important for Russia facing large-scale strategic tasks of providing innovative socially oriented development.
Given the shortage of resources, particularly in the post-crisis environment, the potential of PPP is promising. However, a moment of some uncertainty is present when discussing the issue of PPP in the field of physical culture and sport. The context of PPP in this industry is ambiguously interpreted by scientists. There is no deep economic analysis of this form of interaction between government and business, sometimes mutually exclusive project approaches and solutions are offered. This requires a scientific specification of the structure and mechanism of the PPP, given both system-wide and industry-specific aspects. Materials and methods. The study involved analyzing of the literature on the organization and implementation of PPP projects, as well as the data reported and actual implementation of projects in the sphere of physical culture and sports. The authors kept to the multidisciplinary approach based on the combination of qualitative and quantitative methods.
Results and discussion. The analysis showed the increase in activity in the PPP in the country, regional and industrial environments. If initially the major projects were undertaken in the field of transport infrastructure, in recent years the social sphere has become a priority. This is clearly evidenced, for example, by the data of the European PPP Expertise Centre (Table 1).
Table 1. Distribution of PPP projects in major sectors in EU
Sphere 2010 2011 2012 2013 (1-st half Total Total,
of year) %
Social services (education, recreation and culture, healthcare, etc.) 57 28 40 8 133 46.5
Infrastructure (transport, telecommunications, energetics) 29 14 14 7 64 22.4
Other (public services, ecological projects, safety, etc.) 26 42 12 9 89 31.1
Total 112 84 66 24 286 100.0
Compiled by Plotnikov V.A. (by data of the European PPP Expertise Centre).
Participation in the PPP, government agencies helps to achieve socially significant goals (infrastructure development, enhancement of health services, addressing environmental issues, promotion of healthy lifestyle, etc.), and the organization of business - their own business purposes (profitability growth, expansion of the resource base, attracting investment, increased capitalization, access to new markets, etc.). It is important to note that PPP is constructed as a system of equal and mutually beneficial relations between the state and business. Here dictates of one of the parties are impossible. It is a "partnership", which implies the equality of status of the parties. That is why private businesses are interested in similar projects.
The partnership of government and business entities has its own specifics in each area. In the sphere of physical culture and sport - too. We have studied how this category is reflected in the Russian economical literature (Table 2). Proceeding from the analysis, in view of theory the category of PPP has been studied deeply enough. The majority of its significant aspects is covered (from the area of interaction of the state and private business to evaluation methods of effectiveness of projects).
However, problem areas in the development of PPP related to the conflict of interests of project participants are marked. So, one of the important motivations to participate in the PPP business is the pursuit of "fast" income via the redistribution of budget funds at a relatively low willingness to take on social responsibility projects. In addition, business structures often make excessive and unilateral demands to the government as a partner, seeing it more as a source of irrevocable financing. On the other hand, the discrimination of partnership is manifested when state structures shift liabilities and bankruptcy risks onto business, thus creating disparities of parties. In addition, we can note as problems the lack of state garan-tees to return of investments of the private partner of PPP. This is due to the weak legal framework, nontransparent procedures of competitive selection of partners, changes in the tax treatment and other institutional factors.
In the implementation of PPP, conflicts of interest are bad for the business and investment climate, have a negative impact on the pace of development of sports and entertainment industry, sports industry, modernization of health and fitness services. However, PPP in the field of physical culture and sport keeps
growing in spite of the problems noted. This is due to the fact that they are focused on achieving positive synergies between partners, as well as contribute to the production of the cumulative momentum of development in the project area.
Table 2. The taxonomic structure of the category of "PPP" in the sphere ofphysical culture and sport
Taxonomic component Features, properties Sources
Object-subject area Resources, technology, infrastructure of physical culture, sport and tourism [1, 3, 11]
Goal Nation's health, human resources, sports infrastructure, research and development, information potential [5, 8, 9]
Model of economic cooperation Interaction of state (budgetary) and private (non-budget) funds [4]
Investments Requiring and not requiring investment [2, 11]
Dynamics of project implementation Long-term (cyclical) and short term (fast), "spasmodic" [3, 4]
Place in the structure of development process Recursive process (on the "input - output" of the system in the management algorithm) [8]
Economic potential Diffuse, combinatorial [7]
Depth of industry transformation Radically-modification [1]
Competitiveness of project High (stable), low [10]
Efficiency Socio-economic, integrated [2]
Compiled by Grigoriev V.
Considerable attention is paid to Development of PPP in the field of physical culture and sports in Russia. A set of measures on the implementation of the strategy and principles of development of the industry on the basis of public-private partnerships at the federal level is regarded as a priority for improving the financial security of physical culture, sport and tourism, their social ranking. This is indicated by the content of the main regulatory industry documents - "Strategy of development of physical culture and sports in the Russian Federation for the period up to 2020" (hereinafter - the Strategy) and the State Program "Development of physical culture and sport".
The Strategy emphasizes that partnerships of state structures with business can be implemented in conjunction with an extensive group of subjects: physical culture and sports communities, sports and technical communities, sports federations, social and government organizations that develop military applications and
service-application types of sports, scientific and educational organizations engaged in research in the field of physical culture and sport. The vector of the industry development is manifested in public commitments to massive construction in the period up to 2020 sports infrastructure - 1467 multi-purpose complexes, 733 pools, 733 stadiums via capital investments in the amount of 106,7 billion rubles. The share of the federal budget in the implementation of these projects is 53,6 billion rubles. Volume of the budgets of subjects of the Russian Federation - 48,0 billion rubles, the private sector - 5,1 billion rubles. We believe that the attraction of private business in the amount of less than 5% of the total funding is not enough, it does not take into account the opportunities for expanding the practice of implementation of PPP projects. According to the authors, in modern conditions the potential of the material-technical base of the industry by creating a vertically integrated multi-sports complexes, integrated with shopping facilities and entertainment infrastructure, focused on the implementation of programs with a multiplier effect, is underestimated. The state, providing guarantees and co-investing such projects, can perform the functions of a "catalyst" in their startup. Private business will receive commercial effect from the participation in them due to synergies from the use of physical culture and sport and shopping facilities. The economic efficiency of such projects can be achieved due to the concentration of resources and implementation of high performance advanced technologies.
The experience of the infrastructural support of the XXII Olympic Winter Games in 2014 in Sochi confirms the validity of the author's proposals. In addition to the construction of sports facilities (stadium "Fischt", curling center, figure skating palace, etc.), business was actively involved with the development of transport, housing, energy, tourism and recreational infrastructures. For example, the JSC "Russian Railways" funded the construction of not only the Olympic venues, but also a combined road and railway Adler - Krasnaya Polyana, hotels, etc. In connection with the Olympic Games in Sochi seaport and airport were modernized. The construction of sports facilities has given an impetus to the development economy throughout the region, largely due to the involvement of private capital. The increased goodwill and brand awareness, effective advertising for your target audience were another significant positive effect for business (not only domestic but foreign also) within the Olympic PPP projects.
Conclusion. The results of the study suggest that an innovative model of development of physical culture and sport, based on PPP, is being successfully formed in Russia. The projects in the industry are being implemented on the platform of reforms of public administration, based on the legislation. The main resource of PPP, as a form of organizing economic activity in the physical culture and sport is to create specific opportunities for improvement of management of market institutions, improving the investment climate in the industry. At the same time, some factors prevent the further development of PPP: objective (conflict of interests between partners) and subjective (lack of experience and legal "gaps"). The main efforts of specialists in the medium term should be directed to overcome them. References
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Corresponding author: plotnikov [email protected]
