Public Spending Research Articles

Exploring Systemic and Behavioral Factors Influencing Corruption in Public Procurement: A Global Comparative Study

Public procurement is particularly vulnerable to corruption due to the substantial financial transactions and discretionary powers involved. Inadequate governance structures and cultural norms often exacerbate this vulnerability. This study explores the systemic and behavioral factors contributing to corruption in public procurement through a global comparative lens, focusing on regions including Africa, Asia, Australia, Europe, and the Americas. Systemic factors, such as weak legal frameworks, lack of transparency, and institutional weaknesses, are analyzed alongside behavioral influences, such as cultural norms, individual ethical considerations, and moral disengagement. By conducting a comprehensive literature review, this study consolidates existing knowledge to pinpoint areas for improvement and emerging trends concerning procurement corruption. The research reveals that corruption in public procurement is deeply ingrained in both institutional frameworks and the cultural context in which procurement occurs. It recommends an integrated anti-corruption strategy combining structural reforms, such as bolstering regulatory oversight, with behavioral interventions to reshape cultural norms and foster ethical behavior. These findings offer valuable insights for policymakers and academics, emphasizing the necessity of tailored and multifaceted approaches to combat procurement corruption effectively. The study's results enrich the theoretical understanding of corruption by connecting structural and behavioral strategies, guiding policymakers and international organizations striving to promote transparency and accountability in public procurement.

Review of The Politics of Public Spending edited by Dan Hough and Paul M. Heywood

Review of <i>The Politics of Public Spending</i> edited by Dan Hough and Paul M. Heywood

The Efficiency of Applying Preferential Regimes for Small-Sized Businesses in Public Procurement

This study examines the efficiency of preferential procurement regimes for small-sized businesses (SBs) in Russia, using the example of assessing the results of increased procurement standards. The results of statistical and econometric analysis show a rather moderate increase in SB participation in procurement after increasing the standard. At the same time, the overall volume of purchases from SBs remains significantly lower than the standard. It also turns out that savings on purchases from SBs are greater than on other purchases, and this effect persists after increasing the standard, benefiting the state. In this context, it is necessary to strengthen control over the implementation of procurement standards for SBs and to expand the use of best practices in procurement procedures.

Public Spending and Inclusive Growth in Developing Asia

This paper examines the impact of government spending on inclusive growth in developing Asia, focusing on fiscal redistribution through education, health, and social benefits. Using panel data from 16 countries over the period 1970–2017, we apply a fixed-effects logistic regression model to assess the likelihood of inclusive growth episodes. Our findings indicate that fiscal redistribution, particularly through targeted health and education spending, significantly enhances the chances of achieving inclusive growth. The results also suggest that redistributive spending helps reduce income inequality, ensuring that the benefits of economic growth are more widely shared. We further explore the practical implications of these findings through case studies of China, India, and Vietnam, demonstrating how effective government spending can foster inclusive growth. The paper highlights the importance of well-targeted fiscal policies to support sustainable and equitable development in the post-COVID recovery.

Home remedies: flexibilities to onshore pharmaceutical manufacturing under WTO rules

Abstract In the wake of the Coronavirus Disease 2019 pandemic, governments globally have intensified efforts to localize the production of pharmaceuticals, leveraging local content requirements and incentives to mitigate supply chain vulnerabilities. This shift has revealed tensions with World Trade Organization (WTO) regulations, notably highlighted in Turkey—Pharmaceutical Products (EU). This article explores policy-based flexibilities within the General Agreement on Tariffs and Trade (GATT) 1994, the Agreement on Trade-Related Investment Measures, and the Subsidies and Countervailing Measures (SCM) Agreement that may justify measures inconsistent with WTO norms under specific conditions. Analysing public health exceptions, national security imperatives, and government procurement policies, the paper elucidates how these flexibilities can be mobilized to support onshoring initiatives while adhering to international trade obligations. The findings suggest a nuanced approach to reconciling public health goals and economic strategies with global trade rules, providing a critical framework for policymakers navigating the complex interplay between national interests and international legal commitments.

Insurrection through the balance sheet

Abstract What has actually happened to the political economy of the United States over the last half-century? For too long now, ‘neoliberalism’ has been the standard answer given, yet today, the term seems to have lost both its analytic and critical capacities. Melinda Cooper’s Counterrevolution offers readers a fresh and productive response to this fundamental question of contemporary political economy. Cooper comes neither to praise nor bury neoliberalism but to shift from the level of generalizing accounts or polemics to the level of concrete ideas and the policies they have engendered. She directs attention away from the Chicago school and toward both the Virginia School of public choice theory and a long line of supply-side thinkers. On strictly economic grounds, these two strands ought to be in tension, but Cooper illuminates their political convergence: agreeing to constrain ‘certain kinds of public spending’, they implemented a politics committed to inflating asset values for the wealthy while holding workers’ wage growth in check. This balance-sheet insurrection, which directs the flow of capitalist value upward, stopped and reversed the potential Keynesian revolution that had been underway in the 1950s and 1960s.

Challenges to the Implementation of the new public procurement law in municipal management: the case of Pontal do Paraná

Challenges to the Implementation of the new public procurement law in municipal management: the case of Pontal do Paraná

Understanding Divergent Views on Nearly Zero- Energy Buildings between Developers and Procurers in Romania

This study investigates the awareness, perceptions, and preparedness of Romanian construction developers and public procurement specialists in relation to nearly Zero-Energy Buildings (nZEBs), focusing on factors that influence their adoption. Employing a mixed-methods approach, the research analyzes 193 validated questionnaire responses and insights from interviews with four industry experts. The findings reveal a significant disparity in familiarity with nZEB, with developers exhibiting greater awareness than procurers. Compliance with regulations emerges as the primary driver for nZEB adoption, while high upfront costs and a scarcity of qualified workforce are major barriers. Additionally, the complexity and fragmentation of Romanian legislation on nZEB standards creates ambiguities and further hinders effective implementation. Despite these challenges, developers express moderate optimism about Romanian construction companies' adaptability to future nZEB demands, whereas procurers remain less confident. The study underscores the critical role of proactive policy interventions, clear public procurement criteria, and collaborative strategies in aligning government-funded projects with energy efficiency goals. By addressing systemic barriers and fostering innovation, this research provides policymakers and stakeholders with actionable insights to facilitate a smooth transition to sustainable building practices in Romania.

Perspectives of the World Economy from a Geopolitical Perspective

Global economic activity proved highly resilient during the disinflationary period 2022-2023. Employment and income growth remained relatively steady, as favorable supply and demand developments supported the major economies, despite rising central bank interest rates aimed at restoring price stability. As inflation converges towards target levels and central banks move towards an easing policy stance, a tightening of fiscal policies aimed at reducing the high level of public debt, with higher taxes and lower public spending, is expected to affect overall economic growth. The pace of expansion is also expected to remain subdued by historical standards, reflecting factors including the longer-term consequences of the COVID-19 pandemic, Russia's invasion of Ukraine, weak productivity growth and rising geo-economic fragmentation. The economic outlook has been realized through a statistical approach of the indicators provided by the International Monetary Fund by extrapolating them through linear regression until 2029, using credible and reliable sources of information from specialized economic publications, through an innovative proprietary approach.

Complexity meets flexibility: unintended differentiation in EU public procurement

ABSTRACT The expansion of European Union (EU) regulations often hampers effective policy implementation in the member states. However, little is known about how these diverse states navigate and apply the complex rules in practice, and with what consequences. This study addresses this gap by examining how the 2014 EU public procurement directives impacted procurement practices across the Union. Using a difference-in-difference design, we find that the EU's goals of harmonisation and competition were undermined in practice. First, we observe a rise in single-bid contracts across EU countries compared to non-EU countries, undermining competition. Second, we demonstrate a growing divergence in policy implementation, where member states with varying administrative capacities and corruption risks display different rates of single bids. Third, we show that while a few Eastern European countries with poor procurement records embraced the flexibility to award contracts based on the most economically advantageous tender, Nordic countries largely avoided this flexibility. This divergence raises concerns that the new EU rules have brought about new corruption risks. These findings have important implications, underscoring the unintended consequences of expanding complex and flexible regulations, revealing that efforts to harmonise the internal market can backfire, leading to increased differentiated policy implementation across the member states.

Generative AI and Investigative Journalism—An Application of Baumol's Cost Disease Across Mass Communication Sectors

Generative artificial intelligence (AI) has transformed various industries, automating tasks and enhancing productivity. Yet, its impact varies across sectors. In mass communication, AI has notably benefited entertainment, public relations, and advertising. However, it poses a lesser advantage for investigative journalism, where labor-intensive research and other highly specialized activities depend on highly educated journalists. This situation parallels Baumol's concept of a cost disease, which applies to labor-intensive “stagnant” service sectors such as healthcare, education, and the performing arts. These sectors rely heavily on human labor and struggle to achieve significant productivity gains from technological advances. This means they may require decreasing wages or increasing subsidies to compete with more productive industries. In mass communication, this phenomenon could be especially pertinent to (investigative) journalism, which directly competes for attention with other communication forms. This could exacerbate pressures on wages and working conditions, hindering the attraction of talent to the field and necessitating higher public spending on this vital journalism form. This commentary presents a cross-industry analysis of the impact of generative AI on communication sectors and derives directions for further research that would enhance our understanding of journalism's economic viability in a digital communication landscape and inform policy makers to address the affiliated societal challenges. It closes with a discussion of Guzman and Lewis’s call for more cross-industry research on AI in communication industries.

Impacts of policy-driven public procurement: a methodological review

Abstract In this paper, we review recent research on the impact of public procurement with a focus on methods and data. The growing interest in mobilizing procurement for strategic purposes, such as innovation, economic growth, social value, and sustainable development, has brought to light significant knowledge gaps on the impact of public procurement on products, solutions, actors, and markets. Using a comprehensive approach to analyse scholarly understandings of procurement, we find several notions of policy-driven public procurement and identify challenges in distinguishing between strategic and ‘regular’ public procurement. We then provide a critical discussion on data, examining the currently available data sources and highlighting the need for greater data integration and linkage at the firm level to enable the causal identification of innovation and other impacts from participation in procurement. To address these gaps, we propose a set of actions for research and practice.

CONTROL FUNCTIONS OF ACCOUNTING IN PUBLIC PROCUREMENT

When applying control levers in the process of implementation of public procurement, it is necessary to take into account the relationship between public sector accounting and public procurement, identifying the relationships between the legal frameworks regulating the above areas. Introduced in recent years, public sector accounting standards, legislation, and legislative and by-laws governing public procurement are closely related to each other and complement each other; moreover, during accounting, control over expenditures in the field of public procurement is implemented in practice. The relationship between public procurement and public sector accounting is reflected not only in the disclosure of control functions, but also in various economic operations, through time and methodological differences in balance sheet items (assets, liabilities) recognition.

EMPIRICAL INSIGHTS INTO CENTRALIZED PUBLIC PROCUREMENT: A CASE STUDY

This study case analyzes the implementation of the centralized model of public procurement by the Executive Branch of the Brazilian State of Amapa. Therefore, there is following research question: did the implementation of the centralized model result in improvements in the public procurement process in Amapa? In addition, the adopted methodology is based on a case study, as well as on the collection of information in official systems, added bibliographical and documentary research, questionnaires and semi-structured interviews. As a result, it was found that, from a general perspective, the centralized model works well in the State, however adjustments and improvements are necessary in areas of the centralized model that still require investments, such as planning, procedural agility and articulation with some bodies and entities of State. The findings provide insights into centralized public purchases in a Brazilian state and allow rise up hypothesis about similar experiences in another places (countries, states, municipalities). The compreension about Purchase Centrals it is a relevant tool into test how governments establishment suas procurement strategies and how to maximize the public spend getting economy and celerity.

Predicting the probability of failure in medicinesʼ public procurement

The quality and timeliness of medicinesʼ supply to the healthcare system through public procurement is an urgent task of public policy in all countries of the world, including Russia. Failure to close (failure of tenders, termination of already concluded contracts) procurement procedures in such a socially significant area carries risks for the population, provokes the emergence of hidden transaction costs for the budget system to eliminate the consequences of procurement failures. In their previous works, the authors identified the factors that lead to the failure to close tenders for the purchase of remedies, and initially assessed the consequences of their influence on procurement procedures. The purpose of this article is to present a mathematical model of the probability of non-closure tenders based on the obtained results. To achieve this goal, through processing more than 1 million notifications of public procurement of remedies for 2022–2023, collected from the open sources, the tasks with no methodological solutions were completed. Thus, a set of features accompanying the failure to close procedures for the purchase of remedies was compiled. The composition of identified features was analyzed; their influence on non-closure of the procedure was assessed. A model of the probability of non-closure of the procedure was constructed, and the results were interpreted. Unlike previously published studies, the forecast model was implemented on the ensembles of decision trees using gradient boosting. This made possible to significantly improve the quality of the forecast for each factor affecting the probability of non-closure of the bidding. The results obtained in the article are not only scientifically novel, but can also be used by regulatory and control bodies in public procurement to develop methodological recommendations for customers on establishing optimal conditions for concluding and fulfilling contracts, which will reduce procurement risks and damage to the state budget.

A RESPONSABILIZAÇÃO DOS AGENTES PÚBLICOS POR FRAUDES NAS AQUISIÇÕES PÚBLICAS DURANTE A PANDEMIA DE COVID-19

This is a scientific production whose theme is the accountability of public agents for fraud in public procurement during the COVID-19 pandemic. The Law of Administrative Improbity has been standing out in several aspects of the legal system and evolving in terms of legal and current protection, giving concreteness to the constitutional demand of art. 37, § 4.º, in order to effectively protect administrative morality, valuing honesty in dealing with public matters. For this, penalties have been sanctioned when there is disrespect for probity. This work was dedicated to analyzing the cases of accountability of public agents for fraud in acquisitions during the pandemic period of COVID-19, making an analysis of the concepts brought by the doctrinators and characterizing the improbable conduct, based on the principles of the Federal Constitution of 1988 and especially in compliance with Law No. 14230/21, which provides for administrative impropriety. The methodology used was a descriptive and exploratory literature review, with a qualitative approach. Regarding the results obtained, it is correct to state that during the pandemic period, mainly between the years 2020 and 2021, several public agents were involved in embezzlement, as shown in cases I, II, III and IV. As a result, there is passive corruption, which is practiced by the public agent who requests or receives, for himself or for another person of his interest, either directly or indirectly, any undue advantage due to the position he occupies.

Meat and the future of sustainable diets-Challenges and opportunities.

The British Nutrition Foundation convened a roundtable event in January 2024 entitled 'Meat and the Future of Sustainable Diets: Turning Challenges into Opportunities', bringing together multi-sector stakeholders to discuss the social, nutritional, public health and environmental aspects of meat consumption within a sustainable food system. Participants explored the challenge of the complexity of balancing nutrition and planetary goals, emphasising the need to navigate trade-offs between various dimensions of sustainability. Whilst recognising the global nature of the issue, the roundtable primarily focussed on a UK perspective. The discussion highlighted the urgency of transforming the food system to achieve net zero, whilst ensuring broader environmental benefits, nutritional adequacy and dietary and health equity across all life stages. Concerns about poor dietary patterns, particularly among vulnerable groups were raised, with participants stressing the need for policies that promote healthy, sustainable and equitable diets without worsening inequalities. These policies should also enhance livelihoods and community wellbeing, foster resilience and support local economies. On the supply side, participants called for better data within the agri-food system, particularly at the farm level. They advocated for a multidimensional, holistic approach that goes beyond greenhouse gas emissions to encompass wider environmental impacts and whole-farm benefits, such as enhancing soil health, promoting biodiversity, improving water management, supporting nutrient cycling and boosting farm-level resilience through diversified cropping systems. Roundtable participants acknowledged existing recommendations to reduce meat consumption for both environmental reasons, such as land use and greenhouse gas emissions, and health concerns, as evidence links red, particularly processed, meat consumption with increased colorectal cancer risk. Given the variation in meat consumption globally and even locally between individuals, the discussion explored the potential of targeted campaigns to reduce high meat intake, along with the role of public food procurement and the food industry in decreasing processed meat consumption. The consensus was that dietary changes must be framed within the context of a balanced diet and broader sustainability concerns. Despite some differing viewpoints on implementation, participants agreed that transitioning to healthier, more sustainable diets is a priority. Collaboration across the entire food chain, from farm to fork, with investment in innovation, robust data collection and research, alongside policy support, was emphasised as essential to achieving this goal.

Improving diets and multimorbidity prevention.

In 2023, the UK government announced a Major Conditions Strategy, publishing 'The case for change and our strategic framework', which set out the focus on cancers, diabetes, dementia, mental ill health, musculoskeletal disorders, CVD and chronic respiratory diseases. Together, these conditions account for 60% of total disability-adjusted life years lost to early death or ill health in England, and one in four adults has at least two (multimorbidity). This review considers some of the key dietary risks for these major conditions and population policies that may improve diets and reduce risks. UK Government dietary recommendations, based on independent risk assessment and advice from the Scientific Advisory Committee on Nutrition, are encapsulated in the national food model, the Eatwell Guide. Based on key sources of dietary data - chiefly consumption data from the National Diet and Nutrition Survey and consumer purchase data from Kantar - most people do not meet dietary recommendations. This review considers how science and evidence inform health improvement policy. This includes policies that encourage healthier food choices, such as labelling and public procurement standards to those that minimise the impact of the less healthy choice such as sugar and salt reduction and reformulation. The review also considers nutritional approaches to managing some non-communicable diseases. Given the role nutrition and excess weight play in the onset, prognosis and quality of life for those living with one or more of the major conditions, there are huge potential gains from even small dietary improvements across population groups.

DISPUTE BOARDS COMO MEIO DE RESOLUÇÃO DE CONFLITOS NA LEI DE LICITAÇÕES E CONTRATOS ADMINISTRATIVOS (LEI N. 14.133/2021): A IMPLEMENTAÇÃO DOS DISPUTE BOARDS NOS CONTRATOS ADMINISTRATIVOS

This article analyzes the application of Dispute Resolution Committees as a means of resolving conflicts in administrative contracts, focusing on the Law on Tenders and Administrative Contracts (Law no. 14,133/2021). Dispute Boards emerge as a preventive and effective tool to deal with the complexity and high amounts involved in public contracts, such as concessions and public-private partnerships (PPPs). The study addresses the origin and concept of Dispute Boards, their preventive and resolutive action in contracts, and their increasing use in the public sector, highlighting the challenges and limitations in this context. Furthermore, it deals with Dispute Boards compared to other conflict resolution mechanisms, such as arbitration and mediation, comparing their advantages and advantages. Finally, areas for future research are suggested, such as the economic impact of Dispute Boards and the analysis of practical cases involving large-scale public contracts.

Adiponectin may play a crucial role in the metabolic effects of GLP-1RAs treatment in patients with Type 2 Diabetes Mellitus: a preliminary longitudinal study.

Type 2 diabetes mellitus (T2DM) stands as the most prevalent metabolic disorder globally. T2DM entails numerous cardiovascular complications, which contribute significantly to morbidity, mortality, and increased public spending worldwide. The real challenge for new diabetes drugs lies not only in reducing blood glucose levels and glycated hemoglobin but also in preventing cardiovascular risk. Emerging receptor agonists for glucagon-like peptide-1 (GLP-1RAs) have demonstrated a pivotal role in diabetes management and mitigating cardiovascular risk. We conducted a 12-month longitudinal investigation evaluating the cardio-metabolic effects of GLP-1RAs on a cohort of 65 Caucasian patients diagnosed with T2DM who were scheduled for treatment with GLP-1RAs. Fifty-four T2DM patients successfully completed the 12-month study period, with 30 receiving dulaglutide and 24 receiving semaglutide. In our study population, GLP-1RAs resulted in several positive changes beyond the observed weight loss: a shift in fat distribution, indicated by a reduction in the percentage of visceral fat (1.21 vs. 1.17, p < 0.05); a significant decrease in LDL cholesterol levels (p < 0.05) and triglycerides (p < 0.01); and a significant increase in serum adiponectin levels (p < 0.05), potentially indicating a reduction in insulin resistance and inflammation. Additionally, we observed a significant decrease in microalbuminuria and media-intimal thickness at the carotid vessel level (p < 0.05). In patients with T2DM 1-year therapy with GLP-1RAs has a positive effect on the main determinants of cardiovascular risk including body weight, visceral fat, dyslipidemia, and atherosclerosis. Moreover, the increase in adiponectin may play a pivotal role in controlling the inflammatory state and the mechanisms of vascular damage.