State-Business relations and participation of firms in public procurement in russia: An empirical study (original) (raw)

Access of Firms to Public Procurement in Russia in the 2000s: Before and After Radical Reform of Regulation

SSRN Electronic Journal, 2000

This paper considers the consequences of public procurement reform in Russia in [2005][2006]. We show that before the reform, manufacturing fi rms with government stakes, old fi rms and larger fi rms had advantages in access to government orders. In 2009 large fi rms retain their advantages in access to government orders. Estimated scales of 'kickback' in 2009 were virtually the same as in 2005. Active restructuring of the enterprises had no infl uence on the enterprises' access to government orders. We discuss the reasons for this failure of the radical reform of public procurement in Russia, and provide some policy implications.

Determinants of governmental support of Russian companies: lessons on industrial policy, rent-seeking and corruption

Constitutional Political Economy, 2019

The Russian government has programs to assist Russian companies with financial and organizational support. Award of procurement contracts may also serve as assistance to companies. This paper uses data from a survey of Russian companies to draw inferences about the motivation behind the choice of recipients. Possible motivations are an intent to foster economic development, successful rent-seeking by recipients or simply corruption. The evidence is mixed. There is support for both the economic development motive and rent-seeking in the analysis of financial and organizational support. A role for corruption is most evident in the procurement contract results.

Firms and Public Service Provision in Russia

SSRN Electronic Journal, 2000

The paper is part of the project "Infrastructure and Welfare Services in Russia: Enterprises as Beneficiaries and Service Providers" financed by the Academy of Finland (project number 200936), the World Bank, and Yrjö Jahnsson Foundation.

PLEASE SCROLL DOWN FOR ARTICLE Europe-Asia Studies The evolution of business -state interaction in Russia: From state capture to business capture

This article discusses two basic strategies of Russian companies—isolation from, and close cooperation with the state. The author analyses several ways in which companies realise these strategies, drawing analogies with the ‘exit’ and ‘voice’ strategies suggested by A. Hirschman. It is shown that under the conditions of a weak state these strategies lead either to an expansion of the shadow economy or to ‘state capture’. Both the privatisation of the state and the lack of its privatisation result in budget crises as well as drastic social and political shocks, leading to calls for a ‘strong hand’ in the business community itself. However, as there is little political competition and the mechanisms of democratic control are weak, state consolidation takes place as a bureaucratic consolidation accompanied by new opportunities for informal ‘business capture’ by the authorities. Nevertheless, the high degree of openness of the economy and the remaining heterogeneity of political actors provide business with a wide range of possible strategies of interaction with the state. This article explores how these strategies are becoming more formal and public compared to the 1990s. Strategies of isolation from the state now take place as legal strategies of internationalisation. Cooperation strategies, on the other hand, currently seem to be more efficient when switching from the traditional lobbying of private interests to more rational and collective actions aimed at providing the necessary conditions for sustainable economic development.

GOVERNMENT PROCUREMENTS AS A TOOL FOR THE DEVELOPMENT OF SMALL AND MEDIUM BUSINESS IN RUSSIA

The question of the development of small and medium business is relevant for several decades. This article considers questions regarding the support of small business through the government procurement system. In the framework of the present study, the author attempted to systematize data on the dynamics (since the adoption of the Federal Public Contracts Act), and the structure of government procurement in terms of participation of small businesses in the procurement process, which revealed certain trends. The main research methods were vertical and horizontal analysis of dynamic series, correlation and regression models of the panel data. Data on the participation of small businesses in government procurement are grouped according to various criteria depending on the purpose of analysis. Groups of data were analyzed by 83 subjects of the Russian Federation, which enabled a full-scale assessment of the effectiveness of procurement in terms of the economy. To assess the influence of procurement on the development of small businesses, three hypotheses were put forward: increasing the number of customers placing orders for small businesses, as well as the reduction in the share of customers who do not meet the requirements of the law on the 15-percent threshold; this leads to an increase in budgetary savings, the increase in the number of applications for small businesses leads to an increase in the number of data entities in the regions, the number of orders placed for small businesses affect the cash flow of small businesses. On the basis of panel data for the period 2011-2015 years, a unified information system of state and municipal procurement which built econometric models, have confirmed the hypothesis put forward.

Article 4_Demidova_Yakovlev.pdf

In this paper, we regard public procurement as an instrument used by the government for indirect support of enterprises. In this context, we have investigated the place that public procurement occupy in statebusiness interrelations. Using data from a large survey of Russian manufacturing enterprises conducted in 2009 we show that in Russia public procurement cannot be regarded as a component in the system of exchanges, and the extent of combination between direct and indirect support depends on the level of government. At the federal level direct and indirect instruments of government support complement each other. At the regional and local levels the effect of mutual complementation can be observed only in relations with firms, which conceal information about their ownership structure and are supposedly affiliated with regional and local bureaucrats. In relations with other firms at regional and local levels direct and indirect support substitutes each other. ---------------------------

Government Relations in Russia: (Dis)Connecting Business and State? (2015)

This article examines the practice of government relations (GR) in contemporary Russia using the expert survey method. The survey has revealed the most common types of government relations in Russia, the experts' opinions on the "Lobbying bill", the particular sectors of Russian economy with the maximum of GR practices, and also other issues in the field of business-govern-ment relations in Russia. The author has come to the conclusion that communication skills are of most importance among various kinds of knowledge and skills needed for successful GR in Russia.

The Public Procurement System in Russia: Toward a New Quality

Voprosy Ekonomiki, 2010

This paper examines main principles that form the basis of the Law on placement of orders for public procurement (94-FL) in its current version. The authors outline a whole set of positive changes as well as negative developments following this legal practice. They pay special attention to discussion of problems and imperfections in the system singled out by real participants in the procurements. The authors formulate a range of challenges and tasks to be solved in a new version of the Law on public procurement, and offer an indispensable set of conditions to be allowed for solution of these tasks.

The impact of public procurement on the development of small business in Russia

Финансы и кредит, 2017

This paper will consider the rationale and effectiveness of SMEsupport policies in the award of public procurement (PP) contracts. One group of economic justifications for SME policies derives from the notion that awarding PP contracts to SMEs (and micro-enterprises) encourages innovation, entrepreneurship and so contributes to job creation, economic growth and can support local and regional developments to the benefit of wider society. The link between SMEs, innovation and economic growth has often been assumed in PP policy-making. While some studies show higher growth rates in small than larger firms, others indicate, to the contrary, that many micro and small enterprises, and particularly informal businesses, are not actively seeking to grow. This paper will assess how effective SME policies may be, and questions the extent to which they are properly evaluated. of the United Nations Office of Legal Affairs (the Secretariat of UNCITRAL). Working on modernization and harmonization of national public procurement rules, her research and public interests relate to procurement and limits on its role to support economic and social development. Michael Fruhmann, Ph.D., is the Head of Unit Constitutional Service of the Austrian Federal Chancellery. Representing the Republic of Austria at UNCITRAL, and European Council Working Groups, his research and publication interests are in various topics of Community law as well as national and EU Procurement Law.