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The purpose of this work is to point out the close connection between economic development, public sector and competitiveness of enterprises in Serbia and also a necessary change of the structure of service provider in the aspect of influence on the quality and price of services from the aspect of legal possibilities of the new way of establishing relations between citizens as users of services, state (local selfgovernment) and provider of service-products. Basic stand is that there is no economic environment which will incite entrepreneurial spirit, investments and more quality services for citizens without overall reform of public sector and changing property-legal relationships. With this paper, we want to draw attention especially to finding solutions, which will link reform undertakings in the field of public companies and services through publicprivate partnership.

PUBLIC-PRIVATE PATRNERSHIP AS A MODEL OF PUBLIC SECTOR REFORM IN REPUBLIC OF SERBIA