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2014 (published: 15.09.2014)
Number 3(18)
Home > Issue > 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
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
UDC 338.47
Risks of public-private cooperation in the field of military logistics
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.
Read the full article
Keywords: public-private partnership, military logistics, risks, outsourcing