Conflict resolution in public procurement: The cases of Russia and Kazakhstan

Abstract

This paper analyzes conflict resolution strategies in public procurement in Russia and Kazakhstan based on the suppliers survey. The results have shown that suppliers in Kazakhstan are generally less likely to report a conflict with procurers, both before and after the conclusion of a contract. In turn, the econometric analysis has confirmed the hypothesis that Russian suppliers potentially affiliated with procurers are less likely to encounter conflict situations in public procurement. As an indirect indicator of the affiliation of suppliers with procurers, the question of the attitude of suppliers to the practice of deliberate choice, when the procurer uses the procurement procedure to award a contract to a pre-selected supplier, was used. In addition, the empirical analysis has shown that in both countries, suppliers who were not inclined to trust the court and noted high costs of participation in litigation were more likely to use the strategy of direct negotiations with the procurer to resolve conflicts in public procurement.