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Over-bureaucratisation in public procurement: purposes and results

Author

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  • Juraj Nemec

    (Faculty of Economics and Administration, Brno, Czech Republic; Matej Bel University, Faculty of Economics, Department of Finance and Accounting, Banska Bystrica, Slovak Republic)

  • Matus Grega

    (Matej Bel University, Faculty of Economics, Department of Finance and Accounting, Banska Bystrica, Slovak Republic)

  • Marta Orviska

    (Matej Bel University, Faculty of Economics, Department of Finance and Accounting, Banska Bystrica, Slovak Republic)

Abstract

Most countries spend large sums of money (10 to 15% of their GDP) to procure goods, services and other work from private suppliers. Given this large public procurement market, it is clear that poor procurement practices might hinder sustainable development and negatively impact public finances and economic growth. This article uses data from the Czech Republic and Slovakia to show that these countries’ procurement systems are over-bureaucratised, and tries to identify the causes and results of such a situation. Our findings confirm that the systems investigated are characterised by legislation that is both too detailed and frequently amended, and an administrative culture that prefers compliance to performance. With over-bureaucratisation, procurement officials opt for a Rechtsstaat administrative culture of „bureaucratic safety“ that generates excessive levels of passive waste of public resources.

Suggested Citation

  • Juraj Nemec & Matus Grega & Marta Orviska, 2020. "Over-bureaucratisation in public procurement: purposes and results," Public Sector Economics, Institute of Public Finance, vol. 44(2), pages 251-263.
    • Handle: RePEc:ipf:psejou:v:44:y:2020:i:2:p:251-263
    DOI: 10.3326/pse.44.2.5
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    References listed on IDEAS

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    Cited by:

    1. Beáta Mikušová Meričková & Juraj Nemec & Nikoleta Jakuš Muthová, 2024. "Contract management of municipal public services: the Slovak experience," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.
    2. Peter Nemec, 2024. "Contesting the public works domain: examining the factors affecting presence and success of SMES in public procurement," Empirical Economics, Springer, vol. 67(5), pages 2135-2173, November.

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    More about this item

    Keywords

    public procurement; Slovakia; Czech Republic; bureaucracy;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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