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The Quasi-Markets Of Social Services: The Competitiveness Of Russian Nonprofit Organizations Against For-Profit Organizations And Public Providers


  • Svetlana Suslova

    (National Research University Higher School of Economics)


This paper explores the competitive bidding process in eight regions of Russia where local governments entered into. The bidding documents have been analyzed in terms of the type of provider ownership, public or private, levels of nonprofit activity, and nonprofit competitiveness. The findings indicate considerable discrepancies between the numbers of competitive tenders for social services in the regions in question. The types of social services that local governments procure vary significantly from region to region. It is suggested that these differences are an essential factor in nonprofit participation. The most active nonprofit involvement is found in regions where procured services are that which the nonprofits usually produce. The results reveal a substantial lack of competition in Russian social service quasi-markets. In many cases, nonprofit organizations can be competitive in terms of competitive bidding in Russia; however, this result raises questions about the quality of social services procured by local and regional authorities

Suggested Citation

  • Svetlana Suslova, 2014. "The Quasi-Markets Of Social Services: The Competitiveness Of Russian Nonprofit Organizations Against For-Profit Organizations And Public Providers," HSE Working papers WP BRP 16/PA/2014, National Research University Higher School of Economics.
  • Handle: RePEc:hig:wpaper:16/pa/2014

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    References listed on IDEAS

    1. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    2. Patrick Francois, 2003. "Not-For-Profit Provision of Public Services," Economic Journal, Royal Economic Society, vol. 113(486), pages 53-61, March.
    3. Stephen P. Osborne, 2006. "The New Public Governance?-super-1," Public Management Review, Taylor & Francis Journals, vol. 8(3), pages 377-387, September.
    4. Domberger, Simon & Jensen, Paul, 1997. "Contracting Out by the Public Sector: Theory, Evidence, Prospects," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 13(4), pages 67-78, Winter.
    5. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    6. Julian Le Grand, 2007. "Introduction to The Other Invisible Hand: Delivering Public Services through Choice and Competition," Introductory Chapters, in: The Other Invisible Hand: Delivering Public Services through Choice and Competition, Princeton University Press.
    7. Le Grand, Julian, 1991. "Quasi-markets and Social Policy," Economic Journal, Royal Economic Society, vol. 101(408), pages 1256-1267, September.
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    Cited by:

    1. Vladimir B. Benevolenski, 2014. "Tools Of Government For Support Of Sonpos In Russia: In Search Of Cross-Sector Cooperation In The Delivery Of Social Services," HSE Working papers WP BRP 17/PA/2014, National Research University Higher School of Economics.

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    More about this item


    social service delivery; nonprofit organizations; social services quasi-markets; nonprofit competitiveness;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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