The Potential of Public Procurement for Economic Growth and Social Activity

Introduction. Studying the potential of public procurement is essential for understanding its role in the economic and social development of the state, as well as for making recommendations to improve its efficiency. The article aimed to analyze how public procurement influences economic and social development. Materials and methods. The study’s materials included economics, management, and public procurement articles. It used evaluation and comparative analysis of public procurement practices in different countries and regions. Results of the study. In standard economic and social conditions, public procurement regulation aims to balance particular customer’s interests and economic development as a whole. In the context of national security challenges, the balance of requirements and risks should be unambiguously shifted towards the fastest and most complete satisfaction of customer needs, even at the risk deterioration of the competitive environment. In this regard, it is necessary to further liberalize the procurement practice from a single supplier by simultaneously developing methods to control its risks. Conclusion. Public procurement is a powerful tool to stimulate economic growth and promote social activity, for example, by supporting small and medium-sized enterprises and introducing social criteria in procurement.