scholarly journals The impact of public procurement system on the development of competition in the economy in the light of empirical research

2017 ◽  
Vol 8 (1) ◽  
pp. 37 ◽  
Author(s):  
Arkadiusz Borowiec
Keyword(s):  
Public Procurement ◽  
Value Added ◽  
Point Of View ◽  
Access To Information ◽  
Economic Point ◽  
The Public ◽  
Fair Competition ◽  
Purposeful Sampling ◽  
Procurement System ◽  
The Impact

Research background: The purpose of the public procurement system in the market economy should be to ensure that the public sector entities conduct purchases which are optimal from the economic point of view, as well as to prevent favoring or discrimination of entities participating in public tenders. The Public Procurement Act mentions fair competition as one of the fundamental principles. Both contractors and contracting entities are subject to this principle. In practice, however, it is very often violated in connection with a number of phenomena resulting from imperfections of the aforementioned system. Purpose of the article: The purpose of this article is to identify the most important solutions to support the development of competition in the economy through the public procurement system, as well as to examine the obstacles and risks carried by the system itself. Another purpose is to present further action proposals based on research — actions affecting the development of competition and at the same time improving the efficiency of tenders. Methods: The article is based on the analysis of literature and on a questionnaire. The survey was conducted electronically (CAWI). The questionnaire was sent to 300 entities required to apply the provisions of the Public Procurement Law throughout the country. Another method involved a direct route (PAPI) and 155 entities participating in public tenders as contractors. Purposeful sampling was implemented to ensure reliable and expert replies. The study was carried out in the first half of 2016. Findings and Value added: The results indicate the most important solutions supporting the development of competition. They include the following: facilitating access to information about orders, improving the efficiency of state authorities in detecting collusive tendering, reducing the possibility of using the potential of third parties, and increasing the availability of data on tender results. The solutions presented in this article are evolutionary rather than revolutionary, and point primarily to the ability to streamline existing procedures and regulations and not to replace them with new ones. They should also help to improve the functioning of public procurement system in Poland, which is of great importance for the development of competition in domestic economy.

scholarly journals The State regulation of Public Procurement in Ukraine in the Context of Reforms and Integration Processes

2021 ◽  
Vol 2 (517) ◽  
pp. 35-40
Author(s):  
O. I. Laiko ◽  
Keyword(s):  
National Economy ◽  
Public Procurement ◽  
State Regulation ◽  
The State ◽  
Added Value ◽  
The Public ◽  
Goods And Services ◽  
International Distribution ◽  
Procurement System ◽  
The Impact

The article is concerned with topical issues of the State regulation of public procurement in Ukraine in the context of reforms and integration processes. The conceptual principles of regulation of the public procurement system have been formulated, taking into account the requirements and challenges of modern processes of reforms of the national economy and the implementation of the European integration vector. The public procurement system is considered as a new institutional unit in the national economy – the market for goods and services to the State-owned institutions and organizations with the involvement of budgetary funds. The significance of the public procurement system for the country’s economy as an environment for financing and implementing entrepreneurial initiatives aimed at creating high-quality goods and services, which is characterized by volumes equal to 15% of GDP, is substantiated. The article is aimed at defining the theoretical-conceptual and applied principles of the State regulation of the public procurement system in Ukraine in the context of efficient implementation of reform goals and taking into account the impact and challenges from the active participation of the national economy in the international distribution of labor in the course of integration processes with the EU countries. The article defines the key directions of the State policy on the regulation of the public procurement system, which include: stimulating the economic development of the entrepreneurial sector and overall economic growth on the basis of sustainability and balance; support for the production of domestic goods and services with high added value; stimulation of production of goods and services using local resources; stimulating the creation by domestic producers of both goods and services of cooperation associations in order to use the opportunities for the distribution of labor to create more competitive products; supporting the formation of an economic basis for the development of territorial and economic entities in the regions of Ukraine. As for the above defined directions of the State regulation of the public procurement system in Ukraine, appropriate measures have been proposed, the implementation of which is expected to contribute to the strengthening of the national economy and does not contradict the provisions of ratified international agreements.

scholarly journals Digitalisation of public procurement: The case study of Ukraine

2019 ◽  
Vol 53 (3) ◽  
pp. 61
Author(s):  
Nataliya Synyutka ◽  
Oksana Kurylo ◽  
Mariya Bondarchuk
Keyword(s):  
Public Procurement ◽  
Synthesis Method ◽  
Electronic System ◽  
Theoretical Background ◽  
The Public ◽  
Electronic Procurement ◽  
Public Consumption ◽  
Procurement Procedure ◽  
Procurement System ◽  
The Impact

<p><strong>Theoretical background</strong>: There is an ongoing global acceleration of automation and digitalisation in financial processes, which points to significant changes in public spending policies. After an analysis of several scientific studies, fundamental approaches have been elaborated to understand public consumption and the system of state purchases. The basic hypothesis for this research was to study the possible impact of the electronic procurement market ProZorro on state purchases in Ukraine. Possible directions are: increasing competitiveness, optimising state expenditures and saving the budget funds of public services based on innovative digital technology.</p><p><strong>Purpose of the article</strong>: The main goal is to investigate the impact of the electronic public procurement system ProZorro on corruption and bureaucracy in the public sector of Ukraine. The study object is an analysis of the volume and structure of the public procurement market, the number of procedures and participants in a bidding process, and the savings amounts in ProZorro’s public purchases during the study period in Ukraine.</p><p><strong>Research methods</strong>: The following methods were used during the research of the Ukrainian electronic procurement system: dialectical method; analysis and synthesis method – for a comparison of certain types of public procurement; subthreshold and suprathreshold statistical methods – for analysing the dynamics of indicators of the domestic system of public procurement during the period under research for a comparison of the indicators of public consumption of certain ministries and departments, different regions and territorial entities; structural and logical analysis – for generalising the theoretical and methodological principles of building a public consumption system in Ukraine. The main source of data was the data and analytical base of the ProZorro electronic public procurement system.</p><p><strong>Main findings</strong>: Effects of the innovative digital paradigm on the transparency and efficiency of public procurement are determined. Considerable attention is paid to the implementation of the electronic public procurement system ProZorro in Ukraine. The expediency is substantiated for its implementation in the national practice of budget expenditures, and the principles and procedures of implementation are analysed. The practice and dynamics of the public procurement market in Ukraine are summarised. The conclusions of the advantages of electronic system are provided, including transparency and impartiality, stimulation of competition and non-discrimination of bidding participants, reduction of corruption and the effect of reducing the savings of budget funds. Potential risks, threats and disadvantages of the ProZorro system in Ukraine are highlighted. Among them are: a high proportion of non-competitive procedures; possible latent conflict regarding the participants’ interests; unreasonable time spent on individual procedures; the justification of the procurement procedure to one participant due to a dubious “urgent need”; unreasonable application of the procurement procedure to one participant due to the falsification of conditions or the division of the procurement subject; the existence of discriminatory requirements in the documentation of competitive bidding; and a lack of efficiency in the complaints handling mechanism.</p>

scholarly journals REGULATORY PROVISION OF PUBLIC PROCUREMENT SYSTEM IN THE CONTEXT OF EUROPEAN INTEGRATION OF UKRAINE

Management ◽  
2020 ◽  
Vol 30 (2) ◽  
pp. 75-85
Author(s):  
Lyubov V. Murovana
Keyword(s):  
European Integration ◽  
Social Life ◽  
Public Procurement ◽  
The State ◽  
International Standards ◽  
Systematic Analysis ◽  
National Legislation ◽  
The Public ◽  
Procurement System ◽  
The Impact

Introduction. One of the main directions of Ukraine in international cooperation is the Euro integration process. The main purpose of which is the implementation of national legislation to European standards, with further adaptation and modification in accordance with international rules and regulations.Scientific research hypothesis. Any integration processes are quite complex and time-consuming, but they are necessary to improve the performance of the field in which they take place. Ukraine's European integration is aimed at ensuring the development of the spheres of political, legal, economic and social life of the country, including public procurement system in Ukraine.The purpose of the study is to analyze the impact of integration processes on the current regulatory framework of the public procurement system in Ukraine.Research methods. General and special methods, such as systematic analysis and generalization, were used to determine the state of disclosure of the research problem. The method of comparisons, analogies and systematization was used for the analysis of regulatory documents regulating the sphere of public procurement.Results. On the basis of the author's study of the current state of legal support of the public procurement system in the context of European integration of Ukraine, a gradual distribution of the evolution of national legislation in the field of public procurement to international standards was presented, with its further reformation into the field of public procurement. The basic functions of the institutional structure of the public procurement system are considered and the valid legal acts of the procurement process are summarized.Conclusions. The analysis of the process of reforming the system of "public procurement" in the field of "public procurement" is characterized by a rethinking of the spending units of public funds with the need to approximate national legislation to international standards. For this purpose, a number of normative legal acts have been adopted by the state authorities aimed at accelerating the process of European integration of Ukraine, but some of them require further research and adjustments in order to adapt to national legislation.

Application of Economic Methods to the Сorruption Research

2007 ◽  
pp. 33-44
Author(s):  
N. Epifanova
Keyword(s):  
Social Welfare ◽  
Public Good ◽  
Point Of View ◽  
Total Consumption ◽  
Economic Point ◽  
Social Loss ◽  
The Public ◽  
Economic Methods ◽  
Negative Effect ◽  
The Impact

The paper addresses the analysis of economic approaches to the corruption research. Essence and different kinds of corruption are considered from the economic point of view as well as the impact of corruption on social welfare. The author shows that it is impossible to clarify, whether corruption has a positive or a negative effect, because it may both reduce and increase social welfare. If the corruption causes under-consumption of the public good as compared with the situation of its absence, then there is real social loss in the total consumption. But corruption may also increase the volume of total consumption, therefore increasing social welfare.

scholarly journals PUBLIC PROCUREMENT IN THE CONDITIONS OF THE SLOVAK REPUBLIC WITH REGARD TO THE PARTICIPANTS IN THE PROCUREMENT

2021 ◽  
Vol 9 (1) ◽  
pp. 67-80
Author(s):  
Lucia Bednárová ◽  
Silvia Michalková ◽  
Stanislav Vandžura
Keyword(s):  
Public Administration ◽  
Slovak Republic ◽  
Public Procurement ◽  
High Volume ◽  
Point Of View ◽  
Public And Private ◽  
Developed Country ◽  
Financial Flows ◽  
Economic Point ◽  
The Public

Public finances are a term used to denote specific financial relations and operations taking place within the economic system between public administration institutions, on the one hand, and other entities, on the other. From an economic point of view, a public contract means an efficient allocation of resources with the aim of material and material provision of public administration bodies with such services that these bodies cannot or do not want to secure themselves. Through public procurement, a relatively high volume of public spending is realized in each developed country. Public procurement of goods, services and works by public institutions currently accounts for a relatively high percentage of GDP, estimated at more than 15% in the economies of Central and Eastern Europe. The area of procurement is one of the key areas where the public and private sectors interact financially with each other. As part of the paper, we primarily deal with below-limit and above-limit contracts in public procurement in the Slovak Republic. As part of the research, we focused on the period from 2016 to 2019. The paper provides an overview of the number of procedures in public procurement for the period from 2016 to 2019. In this comparison of data, we try to demonstrate the strength of public procurement in the public sector as well as the volume of financial flows spent on procurement. Within the issue of our research, the acquisition of relevant documents as well as verified procedures is very problematic, as we do not have a significant number of sources of professional and science publications related to these topics in the Slovak Republic.

scholarly journals Improving the Operation of Management Mechanisms in the Implementation of the State Regulation Measures in the Sphere of Public Procurement

2021 ◽  
Vol 1 (516) ◽  
pp. 77-83
Author(s):  
O. M. Sidorenko ◽  
Keyword(s):  
Public Procurement ◽  
State Regulation ◽  
The State ◽  
Control Measures ◽  
Financial Control ◽  
Governance Mechanisms ◽  
The Public ◽  
State Governance ◽  
Procurement System ◽  
The Impact

The article is concerned with considering the current trends in improving the State regulation of the public procurement system in Ukraine. The author defines that one of the key elements of ensuring an adequate level of the State regulation of the public procurement system in our country is the effective organization of the State-based financial control in this sphere. The basis for ensuring the latter is the smooth operation of the relevant State governance mechanisms. The research is aimed at disclosing modern aspects of the State regulation of the public procurement system by implementing the State-based financial control measures, allocating existing problematic issues and developing a model for assessment of efficiency of the measures that will be implemented in the course of its improvement, taking into account the peculiarities of the sphere of public procurement in Ukraine. When writing this article, a direct relationship between the level of efficiency of the State-based financial control in the sphere of public procurement and the level of efficiency of the State regulation of this sphere is determined. It is specified that the key management mechanisms used in the implementation of the State-based financial control in the sphere of public procurement are the organizational, informational and legal ones. Precisely on their condition directly depends the efficiency of the State-based financial control in this sphere. It is determined that each of the above-mentioned the State governance mechanisms has a number of complex, interrelated problematic aspects that impede the maximum level of efficiency of the State-based financial control in the sphere of public procurement. In order to neutralize them, the author proposes to use an automate model for assessing the efficiency of eliminating the shortcomings of the major management mechanisms used in the implementation of the State-based financial control measures in the sphere of public procurement. The presented model allows tracing the impact of relevant measures over time for both the short and long term, is adapted to the economic and socio-political realities of Ukraine, takes into account most of the economic and social risks in the sphere under research.

scholarly journals MEASURING PERFORMANCE QUALITY OF APPLICATION OF PARTICULAR LEGAL SOLUTIONS IN CERTAIN STEPS IN THE PUBLIC PROCUREMENT CYCLE IN MONTENEGRO

2019 ◽  
Vol 29 (1) ◽  
pp. 51-59
Author(s):  
Mersad Mujević
Keyword(s):  
Energy Transport ◽  
Public Procurement ◽  
Point Of View ◽  
Research Activity ◽  
The Public ◽  
Performance Quality ◽  
State Commission ◽  
Business Entities ◽  
Procurement System ◽  
Procurement Contracts

With an aim to achieve a more comprehensive monitoring of public procurement system implementation and an immediate application of the Public Procurement Law and secondary legislation for 2017/2018, I conducted a specific research activity on a sample of 54 respondents or about 9.57% of the total number of parties covered by application of this Law. It is a special-purpose sample, which is composed of individuals having the most experience and knowledge in public procurement affairs, public procurement officers employed in state administration bodies, local selfgovernment units, and business entities operating in the fields of water management, energy, transport and postal services.The aim of the research is to assess the situation regarding application of the Law from the respondents’ point of view, for the period of 12 x 2 months of the years 2017 and 2018.The research was done in a way that I have compiled a questionnaire and submitted it directly to selected representatives of the contracting authorities. The questionnaire contained questions related to the following: the method of organization of public procurement tasks within the contracting authority; the process of public procurement planning; the existence or non-existence of violation of anti-corruption rules and the rules for preventing conflict of interest within the contracting authority; the difficulties related to application of specific public procurement procedures and framework agreements; establishment of optional conditions for assessment of bidders’ capability; the method of conducting low value procurements and urgent procurements; the method of monitoring implementation of public procurement contracts; the training for public procurement tasks; the method of monitoring and observing the decisions of the State Commission for Control of Public Procurement Procedures; the inspection control.After having completed the questionnaire, the contracting authorities submitted their answers electronically, which I processed and analysed.

European Public E-Procurement

2012 ◽  
pp. 230-249 ◽  
Author(s):  
Pietro Previtali
Keyword(s):  
Public Procurement ◽  
Major Change ◽  
Point Of View ◽  
Economic Point ◽  
The Public ◽  
Goods And Services ◽  
European Public ◽  
Legislative Framework ◽  
Public Organisation

The public procurement of goods and services is a strategic activity for governments for at least three reasons: a) it has a relevant economic impact (15–20% of the GDP of European countries); b) it is relevant for potential improvements in governments’ public services; and c) it affects both the competitiveness of nations and the welfare of citizens. After a description of the European central procurement models for the public sectors, this chapter identifies the specificities of the Italian situation, discussing the role of e-procurement platforms across the whole system from an organisational and an economic point of view. Focusing on the Italian Central Procurement Department, the authors conducted a survey on e-transactions over the past four years. The results show the kinds of goods and services that are more compliant with the use of e-procurement tools, trends in transaction volumes and economic amounts and the relevance of different geographical areas and different public organisation typologies. A major change in e-procurement transactions has occurred because of the compulsoriness enforced by legislative framework.

scholarly journals DIRECTIONS OF MINIMIZATION OF FINANCIAL SCAMS IN THE FIELD OF PUBLIC PROCUREMENT

2020 ◽  
pp. 62-76
Author(s):  
Olga KYRYLENKO ◽  
Victor RUSIN
Keyword(s):  
Public Procurement ◽  
Criminal Liability ◽  
Control Measures ◽  
Financial Fraud ◽  
Public Funds ◽  
The Public ◽  
Fair Competition ◽  
International Obligations ◽  
Procurement Reform ◽  
Procurement System

Introduction. Ukraine is undergoing an extremely important and complex process of forming a modern and effective public procurement system aimed at creating a competitive environment and further developing fair competition in public procurement, as well as ensuring compliance with international obligations by consistently adapting Ukrainian legislation to EU standards. The task of public procurement reform is to significantly reduce financial fraud in this area and achieve savings in public funds. The purpose of the article is to analyze the process of reforming the public procurement in Ukraine, focusing on the latest changes, substantiation of proposals for ways to minimize financial fraud in the field of public procurement. Results. The main milestones of formation and improvement of the public procurement system in Ukraine are considered. Emphasis is placed on the features of the current stage, which are to create better conditions for bidders and prevent financial fraud in public procurement, expanding the list of violations and strengthening penalties. Data on the most common types of violations among procurement customers are given. Conclusions. The existing risks of unfair competition in procurement are indicated and the ways of minimizing financial fraud in this area are substantiated. Emphasis is placed on the importance of preventive measures that can be used to detect violations before the conclusion of the contract. In the context of strengthening the effectiveness of control measures, it is proposed to introduce a direct rule of criminal liability for violations in the field of public procurement. The implementation of the proposed measures will help increase the effectiveness of public policy in the field of public procurement, which will ultimately allow for more economical and efficient use of public funds.

scholarly journals The Impact of the COVID-19 Pandemic on Changes in Competitiveness in the Public Procurement System

2021 ◽  
Vol 4 (32) ◽  
pp. 189-201
Author(s):  
Jarosław Szymański
Keyword(s):  
Global Economy ◽  
Ad Hoc ◽  
Public Procurement ◽  
The European Union ◽  
The Public ◽  
Statistical Measures ◽  
European Public ◽  
Public Contracts ◽  
Procurement System ◽  
The Impact

The aim of the article/hypothesis: The impact of the pandemic on the European and global economy is unquestionable. The question is how the epidemiological situation has affected the European public procurement system. The study was limited to assessing the changes in the structure of the procedures used to award public contracts and the possible effects of a lack of dynamics in this respect. The aim of the work is to observe the effects of changes in the structure of tendering procedures and to identify other phenomena in the public procurement system, caused by the pandemic. Methodology: Taking into account the diversity of national solutions in the field of public procurement, resulting both from the legal systems and national practice, an analysis of awarded public contracts was carried out, with particular emphasis on the domestic market. The research was conducted in the direction of determining the changes in preferences of selecting non-competitive procedures, new possibilities of awarding contracts and the analysis of changes in the preferences of the non-competitive procedure on the European Union market. The tools used for the analysis included basic statistical measures and the non-parametric Mann-Whitney test. Results of the research: As a result of the analysis, it was found that there was a statistically significant increase in the share of the non-competitive procedure on the European market. The observation of individual national markets shows that in some Member States there has been a decrease or a very limited increase in the non-competitive mode. This may result from ad hoc legal changes and means that an unknown number of contracts of unknown value was awarded outside the control of the monitoring of the public procurement system.

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