State Procurement

The article covers the topic of state procurement. Institutional model of state procurement system – the most important field for the country and the business is discussed. Considering that the state procurement market is one of the largest in Georgia (constituting 39% of the state budget, and 12% of the gross domestic product), proper institutional functionality of the system and effective functioning of the institute(s) in this field are of great importance.

Correspondingly, main directions of the authority responsible for monitoring of enforcement of the Law of Georgia on State Procurement are reviewed. Each direction is discussed separately and author’s assessment regarding them is provided. At last, author’s vision regarding improvement/sophistication of the institutional arrangement of state procurement system is given in form of the conclusion.

We believe that the current institutional model of the state procurement system requires further improvement and enhancement which will ultimately improve the state procurement

The article refers to the competition (antitrust) issues. Regulations, defined by the legislation, in regards with the production of "black" and "white" lists, as well as their impact on the competitive environment (with respect to the principles of competition) have been reviewed. These are the components of the state procurement system - the most important sphere for both; the country and for the business sector.

Accordingly, legislative and institutional models of "black" and "white" list production have been considered. Each of them was reviewed separately and the author’s evaluation regarding these models have been delivered. Finally, as a conclusion, the summary of the author's vision regarding the "black" and "white" list production expediency was presented.

As it was noted in the report, in order to have a healthy competitive environment in the state procurement of commodity markets, as well as the participating companies to have equal starting conditions and none of the companies not to be discriminated, it’s necessary that the right of forming the "white" and "black" lists was abolished from the “The Law of Georgia on State Procurement”.

Since 1929, Ukrainian farms have not marketed their produce in the usual sense of the word. Instead, agricultural produce for food and industrial use has been procured by the political authorities through some form of state order.

This report examines the background of the state order system, the mechanism of the 1997 state and regional grain orders in Ukraine, the role of the Staet Joint-Stock Concern Ukrainian Grain (Khlib Ukrainy) an the interests of the government and the farm managers in the present system. As long as the state continues to act as the principal grain trader, directly through a government agency or indirectly through a parastatal organization, neither effective agrarian reform nor the real private entrepreneurial activity needed for agricultural development can occur.