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TERRA ECONOMICUS

EVOLUTION OF PUBLIC PROCUREMENT AUCTIONS IN RUSSIA

TERRA ECONOMICUS, , Vol. 17 (no. 1),

Citation: Melnikov, V. V., and Lukashenko, O. A. (2019). Evolution of public procurement auctions in Russia. Terra Economicus, 17(1), 150–173. DOI: 10.23683/20736606-2019-17-1-150-173

Reverse auctions in public procurement have become an important stage, shaping the modern “showcase” of Russian state contractual system. The formal rules that determine conduct of economic entities in this field tend to be an essential factor underlying development of an efficient competitive environment in the public procurement quasi-market, which, other conditions being equal, facilitates growth of well-being for both consumers and producers in Russia. The paper focuses on the evolution of auction technologies and the underlying legal and regulatory framework in the modern Russia. A detailed comparative analysis of various auctions methods used in public procurement in Russia is presented to highlight the rationale of their transformation. Some formal rules are highlighted that contributed to attaining a controlled uniformity of procurement mechanisms, which have led to better predictability and attractiveness of the new market for its participants, and shaped framework for fighting corruption in the public sector. The pressing factors of corruption and quality assurance in public procurement are addressed. The issue is becoming of particular importance since, due to its current administrative reform, Russia is reviewing its offer for joining the WTO Agreement on Government Procurement. The sequence of technological measures in public and municipal procurement, stages and timeline of procurement procedures are detailed. The role of digitalizing public procurement in order to enhance transparency in this segment of economic operations is discussed. The authors have performed a comparative analysis of different types of e-auctions within the federal regulatory environment in Russia. Any robustness and balance improvement in procurement procedure selection can be expected only after mandatory and synchronous electronification of all methods of public procurement in the Russian Federation.


Keywords: auction; public procurement; government regulation; economic policy; effectiveness of the contractual system

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