Article title Public Procurement as an Instrument of Economic Activity Regulation by the State and Implementation of Sustainable Development Objectives
Authors

Doctor of Law, Associate Professor, deputy director Institute of Economic and Legal Research of the National Academy of Sciences of Ukraine (Kyiv, Ukraine) ORCID ID: https://orcid.org/0000-0002-4422-2102 ruzaur13@gmail.com

PhD in Law, academic secretary Institute of Economic and Legal Research of the National Academy of Sciences of Ukraine (Kyiv, Ukraine) ORCID ID: https://orcid.org/0000-0001-9678-1750 vestamalolitneva@gmail.com

 

Name of magazine Legal journal «Law of Ukraine» (Ukrainian version)
Issue 8/2019
Сторінки [47-64]
DOI https://doi.org/10.33498/louu-2019-08-047
Annotation

To perform its functions prescribed by law, the State procures necessary goods, works and services every year. Such purchases are made in large volumes, and this gives the State ample opportunities to influence economy, especially in those industries where it is the dominant consumer. Thus, the role of public procurement can be not only that of a procurement process, but also of an instrument of economic activity regulation by the State. However, today Ukraine has no scientific approach to determining the potential of public procurement as a comprehensive instrument of economic activity regulation by the State, and therefore, there is no assessment of the potential impact of procurement on the economic development of the country.

 The purpose of the article is to introduce a scientific approach to public procurement as an instrument of economic activity regulation by the State, and the essence of this approach is that procurement may become such an instrument provided that appropriate grounds exist; to study the specific features of public procurement as an instrument of economic activity regulation by the State, in particular, the nature of its impact on the activities of participants which in some cases goes beyond that of a mere indirect instrument of State regulation, this being of significant theoretical and practical importance.

The author establishes that the main objective of regulation of public procurement is to ensure economic efficiency, i.e., achievement of the best result with available resources, which implies a value for money factor. At the same time, it is noted that the State is a special buyer, given the need for the protection of public interests; consequently, additional “horizontal” objectives in different areas of State policy are integrated into procurement. The author proves that if such objectives are integrated into the functional objective, public procurement becomes a standalone instrument of economic activity regulation by the State which should be characterized as an indirect instrument. At the same time, the article provides a detailed analysis of cases where public procurement by the nature of its impact on economic activities of participants, especially in areas where the State as a consumer has a decisive influence, can approximate direct instruments of State regulation. The author substantiates that in theoretical and practical terms it is important to distinguish between public procurement as an indirect instrument of economic activity regulation by the State, and an instrument which approximates a direct one, especially in the context of international procurement.

 

Keywords public procurement; regulation; instruments of State regulation; economic activity; direct instruments; indirect instruments; subject matter of the procurement contract.
References

Bibliography

Authored books

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Edited books

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