The value added chain in the mechanism of public-private partnership for the development of the land use economy of rural territories

Keywords: sustainable development, public welfare, program approach, value chain, rural territories, land use.


Purpose. The aims of this paper are (i) to explore public-private partnerships as a tool for economic development of rural economies in developing countries and countries with economies in transition in order to ensure sustainable use of nature and increase public welfare of rural communities through the added value chain; (ii) to develop proposals for the implementation of public-private partnerships on land management and land use in Ukraine.

Methodology / approach. The methodological approach involves study of the world’s PPP practice in land management and land use (including the use of land in forestry), study of the connections between PPP projects and scientific approaches to the concept of sustainable development and the added value chain, as well as analysis of domestic scientific bibliography, which relate to the subject of this study.

Results. The authors found that the declared priorities of the Agenda for Sustainable Development until 2030 require the application of integrated approaches. In particular, the programme in the mechanism of sustainable development management in the form of PPP to ensure sustainable use of nature and increase the social welfare of rural communities. Because the programme approach here involves investing in natural resources and environmental protection and should cover the entire value chain, which directly or indirectly affects the efficiency of natural rural assets, as well as the use and application of innovative technologies.

Originality / scientific novelty. It is substantiated that progress in achieving the declared priorities, in particular in the field of environmental protection, growth of public rural welfare, etc. is possible only in a combination of strengths of all PPP partners, which will eliminate the shortcomings and weaknesses of rural communities. In contrast to existing approaches to the development of the land use economy of rural territories, the basis of the synergy of the parties to PPP is a special natural resource – land, which performs environmental, economic, legal and socio-cultural functions, and determines the form and content, which actually builds sustainable development, including rural. A wide range of PPP forms has been further developed, varying in the degree of involvement and risk taken by the private party in relation to the development of the land use economy of rural territories. The approach to the value chains organization in the development of PPP projects on land management and land use and providing security of land use in terms of taking into account the land use of farmers, formed on different rights, has been improved. The author’s project PPP in the production of pellets a private investor in lumber logging waste provided by some state-owned enterprise both subject to the extension of the moratorium and without its effect is developed.

Practical value / implications. The authors’ research shows that the introduction of the value chain in the mechanism of public-private partnership will lead to significant effective changes in the development of the land use economy, in particular of rural territories. Namely, with the use of appropriate policies it will ensure the provision of sustainable use of natural resources and growth of public welfare, in particular rural communities. This approach allows to involve all stakeholders (government, community, business) for effective management of natural assets in general and agriculture in particular and will increase their level of capitalization and investment attractiveness.


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How to Cite
Tretiak, A., Tretiak, V., Sakal, O., Kovalenko, A., Tretiak, N., & Shtogryn, H. (2020). The value added chain in the mechanism of public-private partnership for the development of the land use economy of rural territories. Agricultural and Resource Economics: International Scientific E-Journal, 6(3), 112-134.