Public Procurement Policy Research Articles

In Search of a Connection: Public Procurement and Active Labour Market Policies in the United Kingdom, United States and Australia

ABSTRACTGovernments in countries such as Australia, the United Kingdom and the United States have increasingly utilised public procurement—their power to purchase goods and services—to assist disadvantaged groups in accessing better‐quality jobs. This approach is part of a broader effort to create ‘good jobs’. However, it is necessary to examine whether this represents a new strategy for addressing persistent issues of inequality in labour markets. This review critically assesses whether public procurement and Active Labour Market Policies (ALMPs) form a coherent, sequential and complementary framework. The conclusion, however, is that this connection is not well‐established. Instead, there is a disjointed situation where the two approaches lack meaningful integration, despite some efforts at the local level.

Critical review of the drivers and barriers for adopting net zero carbon procurement for construction projects

To meet the net zero 2050 target in construction, a net-zero carbon public procurement policy is needed. This paper adopts a systematic review approach to explore the drivers and barriers to adopting net-zero carbon procurement. The top three drivers include developing sustainable public procurement policies, increasing investment in low-carbon procurements, and high demand for green construction projects. The top three barriers include inadequate budget for net-zero procurement implementation, weak capacity in public and private institutions to implement net-zero policies, and low stakeholder involvement. The paper's findings provide insights for stakeholders to effectively adopt net-zero carbon procurement for construction projects.

Produrre legname per l’edilizia aiutando la natura di montagna e l’economia nazionale

The use of timber in the construction sector plays two fundamental roles, both “downstream” and “upstream” of industrial wood processing. Downstream, the construction sector is responsible for 37% of global emissions, and the expansion of timber construction is rightly considered strategic as part of a decarbonization process, where the need to replace high-emission materials represents a competitive advantage for biomass products. It also enhances the quality of living spaces, as highlighted in the New European Bauhaus initiative. Upstream, the construction sector is privileged and therefore essential for providing an outlet for “Closer-to-Nature” forest management: without a market for high-quality timber from sustainably managed forests, the incentives for long-rotation seminatural forest management diminish. This second motivation is well recognised in the public procurement policies of many advanced countries and in those that promote the construction sector. These two roles are of fundamental importance but often neglected in Italian policies aimed at adding value to mountain forests.

Public food procurement and production: Evidence of the food acquisition program in Brazil

This study investigates the impact of the Food Purchase Programme (PAA), a Brazilian public food procurement initiative, on the production value of family farmers. Using a combination of Propensity Score Matching and Difference-in-Differences methods for the period spanning from 2007 to 2016, we observe a significant positive effect of 13.1% on the production value of participating family farmers compared to non-participants. This effect is particularly pronounced among farmers operating smaller and lower-income establishments. Our analysis suggests that increased productivity may serve as a potential mechanism explaining our findings. Additionally, we provide evidence that the PAA program contributes to stabilizing rural incomes and expenditures. Our results have significant policy implications for public food procurement policies, including the importance of focusing on small and low-income agricultural establishments, which may enhance production and alleviate poverty while contributing to family income.

THE IMPACT OF CHANGES IN PUBLIC PROCUREMENT ON THE DEVELOPMENT OF PUBLIC FINANCES IN UKRAINE UNDER THE CONDITIONS OF EUROPEAN INTEGRATION

Introduction. This article examines the transformative effects of public procurement reforms on the development of public finances in Ukraine, especially within the context of the country's ongoing European integration. With Ukraine's strategic pivot towards the European Union, aligning its public procurement policies with EU standards has become imperative. The study meticulously analyzes the legislative changes implemented to harmonize Ukraine's procurement system with the EU's stringent requirements, focusing on transparency, competition, and anti-corruption measures. The purpose of the article. The purpose of the article is to reveal the main features and problems of public procurement in Ukraine in modern conditions and to identify ways to overcome them/ Metods. The study employs a comprehensive methodology, incorporating quantitative data analysis and qualitative assessments from various stakeholders, including government officials, procurement professionals, and EU advisors. Results. The article delves into the challenges and limitations faced during the implementation of these reforms. It underscores the necessity for continuous monitoring and adaptation of policies to ensure sustained progress. The transition has also required significant capacity building and training for public officials to effectively manage the new systems and adhere to best practices in procurement. By providing a nuanced understanding of the interplay between procurement reforms and public finance development, the article offers valuable insights for policymakers, economists, and international bodies involved in the reform processes. Conclusiоns. The article posits that while the journey towards fully integrated and efficient public procurement in Ukraine is ongoing, the initial steps have laid a robust foundation for future advancements. Continued commitment to reform and international cooperation is essential for realizing the full potential of these changes in bolstering Ukraine's public finances and overall economic health amidst its European integration efforts.

Exploring value creation from an ecosystem perspective: A critical examination of social procurement policy

IMPACT Public procurement policy reforms, and specifically social procurement practices designed to support the social economy and create social value, are growing in popularity. However, there is still limited knowledge around the extent to which rhetorical aims of procurement reforms are perceived to be realized through the implementation of social procurement policies. This research provides important insights for social procurement advocates and, in particular, for policy-makers and public managers working at all levels of government. The authors highlight how reforms in Scotland have seemingly benefited the social economy by tangibly directing significant spend toward social economy organizations and changing societal and individual beliefs about their social and economic value. At the same time, there are still barriers to value creation at organizational and individual levels. These findings are important for those attempting to strengthen their social procurement policies and encourage collaboration in a way that advantages actors working across the public service ecosystem.

Innovative public procurement policy failure: a case analysis from Poland

Objectives: The rising popularity of innovation public procurement (IPP) sets a question about conditions as an effective tool of transformative policies, including the governance level, coordination and strategic development. The purpose of the article is to explore the failure of governance in a Polish IPP to present how IPP guidelines are implemented empirically. The other contributions refer to merging DARPA’s approach and IPP. Research Design & Methods: The research article presents conclusions from the case study of first large-scale trial of public procurement procedure with respect to an innovative partnership in Poland. Findings: The case is a rarely analyzed example of policy failure and shows that ignoring stakeholders’ needs, timeline constrains and market capacity can result in policy failure. Program history highlights that proper risk analysis and adaptation to the market context can prevent program failure. Implications / Recommendations: The article opens up a field for considering what steps are crucial in formulating IPP. The analysis leads to the main conclusion that transformative policy frameworks using demand- pull tools need to be embedded in the market realities and capabilities of national innovation systems. Article classification: research article

Beyond ‘economic nationalism’? The (limited) influence of populist parties on public procurement in France and Germany

ABSTRACT This paper explores the populist stance on public procurement policies and how populist parties exert influence on public procurement. The assessment of this influence is grounded in an original analysis of media reporting, and parliamentary questions posed by right- and left-wing populists in France and Germany. Despite the financial significance of procurement and its potential to bolster and protect national economies, the study reveals a relatively low level of salience. There is limited evidence supporting the assumption that populists actively push for more ‘economic nationalism’. Rather they mainly criticise perceived corrupt elites, reflecting a consistent trend of anti-establishment contestation across both semi-presidential and parliamentary systems. Where such advocacy occurs, ‘cultural’ and ‘economic nationalist’ positions prevail across both right- and left-wing populists. Theoretically, these findings contribute novel insights into the link between thin-populist and thick-host ideologies.

Global bamboo forest certification: The state of the art

Illegal logging is an important cause of deforestation and forest degradation. As a voluntary market-driven mechanism, sustainable forest management certification aims to reduce illegal logging in forests and promote sustainable management practices by creating a transparent, independent tracing and auditing mechanism. To date, around 11% of global forest areas have been certified under forest certification schemes. Biologically, bamboo belongs to the grass family and is classified as a non-timber forest product. Owing to its high fibre quality, many bamboo panel-based products, such as flooring, furniture, and kitchenware, are traded as alternatives to timber products in the global market. Forest certification is widely acknowledged as a means of ensuring the sustainability and legality of forest sources by European countries and the United States, which are the largest importers of bamboo products. Therefore, certified bamboo and its products are often required to meet the legal requirements and public procurement policies when entering these markets. Currently, 48 valid Forest Stewardship Council (FSC) bamboo forest management certificates and 3237 valid bamboo FSC Chain of Custody (CoC) certificates have been issued, while only 1 bamboo forest management and 3 bamboo CoC certificates have been documented in PEFC (Program for the Endorsement of Forest Certification) online database. Here, we describe the current development of global bamboo forest certification in terms of certification standards, practices, and markets; analyze challenges and future trends; and offer recommendations for creating interest in this issue and taking further action.

Examination of the Strategies Put in Place by Lagos State Public Procurement Agency in the Implementation of Public Procurement Law

This paper examined the strategies put in place by Lagos State Public Procurement Agency in the application of public procurement policy. The paper adopted both primary and secondary sources of data, and primary data were collected via the administration of questionnaires on the respondents. Study population of 1,020 comprised the members of staff from ministries, and agency that supervises the execution of procurement policy in the Lagos State Public Procurement Agency (LSPPA). Proportionate random sampling method was adopted in selecting a sample size of 154 respondents representing 15% of the study population. Secondary data were got from books, academic journals, official document of LSPPA and the internet. Data collected were analysed using percentage, frequency, and (RII) Relative Importance Index. The results of the study revealed that the strategies put in place by Lagos State Public Procurement Agency; such as establishment of a threshold (52.6%, rank 7th), constitution of contract performance audit committee (63%, rank 9.5th), supervision of the deliveries (69.5%, rank 9.5th), and creation of a procurement officer’s desk (57.8%, rank 8th) were not adequately substantial strategies put in place in monitoring the execution of public procurement policy in Lagos state. Moreover, the paper revealed strategies that were mostly substantial which were put in place by Lagos State Public Procurement Agency in the implementation of public procurement law, such as composition of technical review committee (79.9%, rank 1st), appraisal of procurement plan for procuring entities (73.3%, rank 2nd), setting of fair pricing standards and benchmarks (61%, rank 6th), strategic oversight on the contracts (65.6%, rank 5th), keeping of contractors’ database for proper identification (65.6%, rank 4th), publication of details of major contracts in the State (69.5%, rank 3rd) significantly improved accountability, proficiency, efficacy among the ministries selected. The study therefore, concludes that the strategies put in place by LSPPA, Lagos State Public Procurement Agency in the implementation of public procurement law in the state is considerable, and appropriate which ensures that procurement law of the State is followed. It was further evident from six claims affirmation as against four claims that refuted it respectively.

Ecological Factors in Public Procurement and Corporate Sustainability Policies

European Institutions and scholars are reflecting upon the nature of the requirements that are or can be used to implement sustainability through Public Procurement. As far as public organisations are concerned, the Portuguese government's actions are in the same wavelength as the European guidelines on the matter. Public procurement involves economic operators. Thus, it is important to try to understand if the European Union proposal for a directive on "Corporate Sustainability Due Diligence" is an interesting tool in the discussion. Recently, the Portuguese Council of Ministers issued Resolution no. 132/2023, of 25 October, defining the ecological criteria applicable to certain kinds of contracts and products, goods and services concerning some administrative bodies, a Resolution which, nevertheless, is prone to criticism. May the shift of the European Union Public Procurement paradigm help implement Sustainable Public Procurement through mandatory requirements? Can the future Directive help economic operators align with contracting authorities to implement Sustainable Public Procurement? Might the obligation to include environmental factors help fulfil the Directive's due diligence obligations? And, lastly, has Portugal taken the right step with the issuance of Resolution no. 132/2023?

Public Procurement Policies to Foster Innovation Development

Government and public sector demand from the perspective of demand-push policies as a tool of technology and innovation policy have been discussed in detail in the literature. Policymakers have always considered advantages such as promoting local production goals, reducing imports and dependence upon foreign countries, and meeting domestic needs with technology development and innovation. In Iran such policies have been designed and implemented and can be classified into two categories: horizontal and vertical policies. Horizontal policies refer to policy programs that regulate the general government market and the public sector. In vertical policies, however, government demand in a particular product area is regulated. In order to analyze the different types of application of these policies in Iran, several cases of horizontal and vertical policies have been studied and compared in this article. From the horizontal policies, the law of maximum use of domestic power and Foreign Finance Credit have been selected. Among the vertical policies, the policy of 10 basic oil products and the experience of the Iran-Lab-Expo have been examined. Attempts have been made to analyze and compare the above policies based on the general pattern of government programs to stimulate government demand for technology and innovation. Finally, the lessons learned from Iran’s policy experiences in the field of public sector demand orientation as a tool of technology and innovation policy are described.

Public procurement and innovation policy in Russia: a perspective of narrative economics

Objective: to identify narratives describing the use of public procurement system for innovation policy implementation and to critically analyze them.Methods: quantitative analysis of the frequency of narratives, qualitative analysis of narratives to identify protomodels, institutions and social context.Results: in the modern Russian economic system, public procurement is used as a tool for implementing the national innovation policy. The analysis of legal acts regulating public procurement of innovative and high-tech goods showed the trends that potentially reduce the variability of procuring entities' actions and the transparency of procurement procedures. Based on the tools of narrative economics, the authors analyzed the attitude of actors (representatives of the state, business and academia) of the Russian innovation system to the existing practice of public procurement in the context of the national innovation policy. As a result, the work presents a typology of public procurement problems, discussed in mass media, for Russia’s innovative development.Scientific novelty: the considered narratives show that, in relation to the Russian innovation system, the public procurement subjects can act in the logic of the “principal-agent” theory, while the tendency to reduce transparency is welcomed by some actors.Practical significance: institutional analysis of the recent changes in public procurement, including the rules governing the procurement of innovative and high-tech products, has revealed the devolution of formalized rules aimed at the implementation of state innovation policy. Together with the increased level of privacy in organizational activities of procuring entities, this carries the risks of not only increasing the level of opportunistic behavior of the public procurement market subjects, but also decreasing confidence in the entire public procurement system.

Public procurement policies of Nigeria and Ghana: an analysis of the administrative challenges in achieving value for money

PurposeThis study aims to focus on public policy concerning the implementation of public procurement policies in Nigeria and Ghana toward achieving value for money in the procurement of goods, services and works. It specifically analyzes some major administrative challenges Nigeria and Ghana are faced with in the administration/implementation of public procurement policies toward achieving value for money. It looks at the relationship between the state (regulatory authorities) and substate (procurement entities) in the public sectors of Nigeria and Ghana.Design/methodology/approachA comparative case study approach is adopted, where the two countries are compared in terms of achieving value for money. Data was collected from multiple sources, including in-depth interviews. The use of official documents and direct observations at the procurement regulatory authorities and entities’ premises.FindingsThis study found Nigeria often used the four Es – economy, efficiency, effectiveness and equity while Ghana mainly used the traditional five rights (right quantity, right quality, right price, right place and right time) as their criteria for ensuring value for money. The major administrative challenges found include corruption, low capacity of procurement personnel and poor knowledge of the procurement laws.Social implicationsIt recommends effective collaboration between government and civil society groups in the fight against corruption in procurement-related activities, with the implication that there is a need for periodic training for public procurement officials.Originality/valueIt adds to the field of public procurement in terms of value for money in the procurement of goods, services and works in developing countries context.

Is There a Trade-off Between Sustainability and Competition Goals in Public Procurement? Evidence from Slovenia

Over the past decade, public procurement goals have expanded from obtaining free competition and lowest prices to achieving objectives of “horizontal” policies that take into account ecological and social aspects. However, the Tinbergen Rule states that one instrument should be matched with one goal, while using one instrument for achieving multiple goals would undermine its effectiveness. In this paper, we will examine whether implementation of “horizontal” public procurement policies related to green public procurement, socially responsible public procurement and the promotion of micro, small and medium enterprises’ participation affect achievement of the “primary” public procurement goal of free competition. Our study is based on empirical data on more than 65,000 public procurements carried out in Slovenia during the period 2016-2019.

The heterogeneous impact of green public procurement on corporate green innovation

Effectively strengthening support for corporate green innovation and promoting green transformation has become the key to promoting coordinated economic and social development in China. As a demand-oriented innovation incentive policy, green public procurement is vital for promoting green innovation. Data from A-share listed firms (2013–2019) are analyzed to explore the impact of green public procurement on corporate green innovation including the heterogeneous effects under different environmental regulation intensity levels. The results show that green public procurement significantly promotes corporate green innovation, especially in areas with strong environmental regulation. Heterogeneity analyses at the firm, industry, and regional levels show that the promotion effect of green public procurement on corporate green innovation is more significant for non-state-owned, small-scale, and ISO 14001-certified enterprises; technology-intensive industries, and enterprises in eastern China and regions with high financial development levels. This study has implications for improving the effectiveness and accuracy of green public procurement policies.

Conflict of Interest: An Epidemic Dilemma Within the South African Public Procurement System

Background: Challenges of the South African public procurement system continues unabated to make visible footprints in the yearly Auditor-General’s reports. At the centre of the challenges is the failure to comply with the legislative framework regulating public procurement resulting in irregular expenditure. Compliance failures are at the root of evil deeds and misconduct in the South African public sector.Setting: The existence of a plethora of legislative frameworks, polices and standard operating procedures and the yearly reports of the Auditor-General leaves one pondering in relation to the difficulty for procurement officials to adhere to these prescripts. Aim: It against this notion that this conceptual paper gives an analysis of the impact of conflict of interests as suspect in chief on failure by procurement officials to adhere on procurement regulations. Of essence is to examine causal factors and inherent consequences which in most instances is conflicting interest by public officials.Method: This paper analyses secondary data with regard to conflict of interest with in the South African public procurement system. This is done by means of literature and government documentation.Conclusion: This paper concludes that the concept of conflict of interest is not new within the procurement space, yet procurement officials still grapple on how to effectively deal with it whenever it arises. This therefore calls for reform in procurement processes especially in ensuring consequentialism for wrongdoers.Contribution: The paper contributes towards the shaping of public procurement policies and ethical guidelines in all spheres of government. This paper further contributes to the body of knowledge considering that it will unearth critical dimensions of conflict of interests particularly for the public sector.

Editorial Presentation - Perspectives on innovation governance: challenges and dilemmas

Editorial Presentation - Perspectives on innovation governance: challenges and dilemmas

Patterns of technological capability development in Iran's steel industry: An analysis based on windows of opportunity for technological learning

The concept of windows of opportunity is more focused on innovation development. Nevertheless, for accumulating capabilities and reduce gap with the advanced world, latecomers should use these windows of opportunity and technological learning strategies simultaneously. Based on this concept, Iran's steel can achieve innovation in some processes and there for, reviewing the experience of this industry can have lessons learned for other mineral industries as well. Using the mixed method (Case study and Multicriteria decision-making model), this research has tried to investigate and explain the opportunities for technological learning in institutional, demand, and technology dimensions. The Results showed that the government uses planning, investment, financing mechanisms, public procurement, and empowerment policies that open windows of opportunity to firms for learning technology and enhancing innovation capabilities. On the other hand, enhancing absorptive capacity through learning by doing, emergence and development of technical-engineering companies, suppliers of equipment and parts abilities, and Innovation through R&D efforts, buying technology licenses, join manufacturing the equipment with MNCs and suppliers were the most import of windows for technological learning. Result of the DEMATEL technique, not only describe the interrelationship between all windows of opportunity, but also it shows that smart and open relationship with the world which affects by sanctions is the most influential factor for technological learning.

Variation in Price of Cardiovascular and Diabetes Medicine in Indonesia, and Relationship with Quality: A Mixed Methods Study in East Java.

Lower-middle income Indonesia, the world's fourth most populous country, has struggled to contain costs in its mandatory, single-payer public health insurance system since the system's inception in 2014. Public procurement policies radically reduced prices of most medicines in public facilities and the wider market. However, professional associations and the press have questioned the quality of these low-cost, unbranded generic medicines. We collected 204 samples of four cardiovascular and one antidiabetic medicines from health facilities and retail outlets in East Java. We collected amlodipine, captopril, furosemide, simvastatin, and glibenclamide, sampling to reflect patients' likelihood of exposure to specific brands and outlets. We recorded sales prices and maximum retail prices and tested medicines for dissolution and percentage of labeled content using high-performance liquid chromatography. We conducted in-depth interviews with supply chain actors. All samples, including those provided free in public facilities, met quality specifications. Most manufacturers make both branded and unbranded medicines. Retail prices varied widely. The median ratio of price to the lowest price for an equivalent product was 5.1, and a few brands sold for over 100 times the minimum price. Prices also varied between outlets for identical products because retail pharmacies set prices to maximize profit. Because very-low-cost medicines were universally available and of good quality, we believe richer patients who chose to buy branded products effectively protected medicine quality for poorer patients in Indonesia because manufacturers cross-subsidize between branded and unbranded versions of the same medicine.