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Civil Coordination as a Factor in the Efficiency of Provision of Local Public Goods
Pylypenko Y. I., Pylypenko H. M., Alieksieienko D. D.

Pylypenko, Yuriy I., Pylypenko, Hanna M., and Alieksieienko, Daria D. (2020) “Civil Coordination as a Factor in the Efficiency of Provision of Local Public Goods.” Business Inform 3:8–15.
https://doi.org/10.32983/2222-4459-2020-3-8-15

Section: Economic Theory

Article is written in Ukrainian
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UDC 330.544.2:338.242

Abstract:
The article is concerned with the search for a social mechanism capable of influencing the production of public goods and ensuring the growth of its efficiency. Among the arguments, existent in economic theory, about «the State failures» in the production of public goods (the inability to identify valid public preferences, unfocused behavior of officials) the problem of combining the interests of subjects in order to achieve collective goals and, accordingly, of the nature and mechanisms of their harmonization in the production of public goods is allocated. The mechanisms of market and the State-based coordination have been analyzed and their limitations in solving the problem of harmonization of individual actions in the production of public goods have been shown. The authors prove the increased socio-economic effect of civil coordination in this sphere, when economic subjects are united in one community and undertake obligations to narrowing the options for action to a specific, ethically justified set. It is shown that the mechanism for harmonizing the activities of subjects in such coordination is to adhere to generally accepted norms and rules of conduct, which reduces the likelihood of freeridership and contributes to the reduction of transaction costs. Based on the comparison of the target functions of the groups according to M. Olson and R. Putnam, the quality parameters of the community, which is able to generate a collective interest in the production of local public goods, are allocated. In order to improve efficiency, it is proposed to narrow the sphere of provision of public goods to the local level, in view of the criterion of institutional proximity of subjects, and to transfer a number of goods traditionally provided by the State to the zone of control and/or production by local communities.

Keywords: local public goods, market coordination, State coordination, civil coordination, institutional locality, M. Olson groups, R. Putnam groups, social capital.

Bibl.: 13.

Pylypenko Yuriy I. – Doctor of Sciences (Economics), Professor, Head of the Department, Department of Economic Theory and International Economic Relations, National Technical University «Dnipro Polytechnic» (19 D. Yavornytskyi Ave., Dnіpro, 49005, Ukraine)
Email: [email protected]
Pylypenko Hanna M. – Doctor of Sciences (Economics), Professor, Professor, Department of Tourism and Enterprise Economics, National Technical University «Dnipro Polytechnic» (19 D. Yavornytskyi Ave., Dnіpro, 49005, Ukraine)
Email: [email protected]
Alieksieienko Daria D. – Applicant, Department of Economic Theory and International Economic Relations, National Technical University «Dnipro Polytechnic» (19 D. Yavornytskyi Ave., Dnіpro, 49005, Ukraine)
Email: [email protected]

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