Scientific journal NRU ITMO
Series "Economics and Environmental Management"
Registration certificate ЭЛ № ФС 77 – 55411 от 17.09.2013
registered by the Federal Inspectorate Service for Communication, Information Technologies and Communication Media
ISSN:2310-1172

2014 (published: 15.09.2014)

Number 3(18)

Home > Issue > Risks of public-private cooperation in the field of military logistics

UDC 338.47

Risks of public-private cooperation in the field of military logistics

Kurbanov A. Kh., Krekotnev R.N., Pakhomov V.I.

The present paper contains an analysis of advantages and disadvantages of public-private partnership in the field of organization of military logistic centers for the need of the Armed Forces of the Russian Federation. It is demonstrated that both partners (the State and the private operator) get economical and political advantages thanks to their participation in this cooperation. It is demonstrated that the risks of public-private partnership in the field of military logistics include risks of low economic effectiveness and risks of moral hazard (which may lead to cancellation of the contract). The private operator must also take into account the risk of economical sanctions. Recommendations for the minimization of all types of risks are given. An algorithm of concordance of interests of both partners in the field of maximization of effectiveness of use of logistic potential of these centers is described.
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Keywords: public-private partnership, military logistics, risks, outsourcing

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