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Centralised and Decentralised Public Procurement

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Abstract

Central and eastern European countries conduct public procurement on a highly decentralised basis, at the level of individual spending ministries, local authorities or other public bodies covered by the procurement law. However, in some cases, there may be advantages in mixing this approach with elements of centralisation, as is the case in many EU Member States. This paper reviews the experience of selected EU countries. The establishment in many central and eastern European countries of public procurement offices that are not responsible for actual purchasing but set national policy, organise training, draft legislation, etc., represents a great change from the earlier central monopoly purchasing systems. The purchasing function itself has been decentralised to hundreds or sometimes thousands of procuring entities. Many countries in the region see the new procurement model as part of the process of democratisation and do not want to replicate earlier institutions and mistakes. They are trying to move rapidly from one system to another. This paper sheds light on the various issues to be considered in deciding how procurement systems in these countries might evolve in the future. The target audience is primarily public procurement offices in Central and Eastern Europe, but the paper could also prove useful to other transition and developing countries that are in the process of modernising their procurement laws and systems.

Suggested Citation

  • Oecd, 2000. "Centralised and Decentralised Public Procurement," SIGMA Papers 29, OECD Publishing.
  • Handle: RePEc:oec:govaac:29-en
    DOI: 10.1787/5kml60w5dxr1-en
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    Cited by:

    1. Stéphanie Boulenger & Marcelin Joanis, 2015. "Analyse économique des marchés publics dans l’industrie de la construction au Québec," CIRANO Project Reports 2015rp-23, CIRANO.
    2. Kim Dae-in & Yoo Joon Koo, 2012. "Microtrade and Public Procurement: Facilitating "Aid for Trade" through Government Purchasing," The Law and Development Review, De Gruyter, vol. 5(1), pages 129-152, June.
    3. Fazekas,Mihály & Blum,Jurgen Rene, 2021. "Improving Public Procurement Outcomes : Review of Tools and the State of the Evidence Base," Policy Research Working Paper Series 9690, The World Bank.
    4. Taro Katsurai & Daisuke Sasaki & Ryo Fujikura, 2022. "What Determines the Time Efficiency of the Purchasing Phase of Public Procurement in Developing Countries: Evidence from Japanese ODA Loans," Working Papers 229, JICA Research Institute.
    5. repec:prg:jnlpep:v:preprint:id:692:p:1-17 is not listed on IDEAS
    6. Michal Plaček & Martin Schmidt & František Ochrana & Milan Půček, 2019. "Factors Affecting the Length of Procedure in Public Procurement: The Case of the Czech Republic," Prague Economic Papers, Prague University of Economics and Business, vol. 2019(3), pages 313-329.
    7. Heinz Handler, 2005. "Das öffentliche Auftragswesen im gesamtwirtschaftlichen Zusammenhang," WIFO Working Papers 250, WIFO.
    8. Simona Baldi & Davide Vannoni, 2014. "The Impact of Centralization, Corruption and Institutional Quality on Procurement Prices: An Application to Pharmaceutical Purchasing in Italy," Carlo Alberto Notebooks 379, Collegio Carlo Alberto.

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