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September 2015 (published: 14.09.2015)
Number 3(22)
Home > Issue > The cyclical evolution of public procurement in Russia:
what should we expect after the law on the contract system
Khvalynskiy D.S.
Public procurement in the modern world is one of the fastest growing state function. Over the past 15 years, public procurement has evolved in Russia from a simple administrative function to a strategic value that has a key role for the effectiveness and quality of state governance, stimulate economic growth and business support. The author analyzedthe historic development of the Russian public procurement system and definedcyclical phases of its evolution. Healso analyzed the causes of the cycles. The author comes to the conclusion that the efficiency of procurement, expanding the range of tender bidders, entailing the increase in procedural costs, and obtaining a positive socio-economic externalities are not coinciding tasks. The result of state policy attempts to find a compromise between these tasks is the reason of cyclical evolution of the public procurementsystem. The author identifies three cyclical stages of development of public procurement: economy management, management effectiveness and performance management. The cyclical sequence of stages in development of public procurement system is also prognostic in nature and can be used for more careful preparation of legislative acts of the forthcoming direction of reforming the system.
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Keywords: Identification of suppliers (contractors, executors), public order, public procurement, efficiency, competition, contract system in the sphere of procurement, effectiveness, economic cycles.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
UDC 351.72
The cyclical evolution of public procurement in Russia:
what should we expect after the law on the contract system
Public procurement in the modern world is one of the fastest growing state function. Over the past 15 years, public procurement has evolved in Russia from a simple administrative function to a strategic value that has a key role for the effectiveness and quality of state governance, stimulate economic growth and business support. The author analyzedthe historic development of the Russian public procurement system and definedcyclical phases of its evolution. Healso analyzed the causes of the cycles. The author comes to the conclusion that the efficiency of procurement, expanding the range of tender bidders, entailing the increase in procedural costs, and obtaining a positive socio-economic externalities are not coinciding tasks. The result of state policy attempts to find a compromise between these tasks is the reason of cyclical evolution of the public procurementsystem. The author identifies three cyclical stages of development of public procurement: economy management, management effectiveness and performance management. The cyclical sequence of stages in development of public procurement system is also prognostic in nature and can be used for more careful preparation of legislative acts of the forthcoming direction of reforming the system.
Read the full article
Keywords: Identification of suppliers (contractors, executors), public order, public procurement, efficiency, competition, contract system in the sphere of procurement, effectiveness, economic cycles.