The formation of Russian public procurement system on market principles

TERRA ECONOMICUS, , Vol. 14 (no. 4),

The article deals with transformation of the Russian procurement system of products for the public needs for the past 25 years. The author describes the process of introduction of new institutions and construction of new institutional mechanisms of interaction in the emerging quasi-market. The impact of international procurement experience is taken into account, as well as vestiges of the Soviet system of public administration, macro-economic, regional and socio-political factors. The chronology of modernization of regulatory support in the sphere of management is shown through the prism of economic policy measures, along with the number of problems in the regulation of public purchases system and their impact on the behavior of state and municipal customers and suppliers. The ideological component of market reforms directed at monitoring and preventing corruption and improving the efficiency of public expenditures is emphasized, demonstrating transition from an industrial policy to the competition policy. Against the background of the evolutionary development of a formal system of rules it becomes obvious that the public procurement issues lurk in the very concept of law, almost always appropriate to the needs of economic agents. For example, the formation of the institutional environment of the market of public procurement concludes the low efficiency of the state self-control in Russia’s modern history.

Keywords: procurement; public purchases; government regulation; economic policy; effectiveness of the contract system

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606