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Enhancement of the institutional environment of public procurement market in the context of risk reduction

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

The article deals with the issue of improving institutional environment in the government and municipal procurement in Russia. The analysis is focused at the present stage of these systems’ evolution – establishment of the contract system, featured by increased digitalization of all stages of procurement cycle (planning, implementation, contracting, performance verification). Survey of expert opinion on the public procurement management have been conducted among a sample of the course attendees who raised their professional level in a Pilot Center of Public Procurement of the Southern Federal University, Rostov-on-Don, Russia. Research findings have shown that in Russia, increase in transparency of procurement procedures when electronic auction serves as a prior method for the supplier/contractor to be chosen, ensures competitiveness of tenders. Implied risks are inefficient use of budgetary funds, poor addressing of social needs, as well as the risk of corruption. Measures to mitigate the risk of corruption are introduced, including, in particular, development of public procurement monitoring e-system which would involve, along with the electronic auction, open electronic competition as a method to identify the supplier/contractor.

Keywords: institutional environment; public procurement; risks; contract system; corruption; public control; mixed model

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