JEL Classification: H57; H56; E69 |
DOI: https://doi.org/10.31521/modecon.V43(2024)-20 |
Cherevatyi Taras, PhD in Military Sciences, Associate Professor of the Department of Economics and Financial Support of the Institute of Logistics and Support of Troops (Forces) of the National Defense University of Ukraine
ORCID ID: 0000-0003-0866-295X
e-mail: cherevatiy_taras@ukr.net
Efficiency of Public and Defense Procurement in Ukraine: Realities and Ways to Optimization
Abstract. Introduction. The article is aimed at analyzing the efficiency of the system of public and defense procurement in Ukraine. It focuses primarily on the need to create an efficient, transparent, and accountable procurement system capable of adapting to rapidly changing conditions and challenges, especially under martial law and during Ukraine’s European integration.
Purpose. This article aims to assess the current state of public and defense procurement in Ukraine, identify key problems, and suggest possible ways to optimize them for increased efficiency. It emphasizes the need for an effective, transparent, and accountable procurement system capable of adapting to rapidly changing conditions and challenges, particularly under martial law and during Ukraine’s European integration..
Results. The article analyzes the requirements of Ukraine’s legal framework for ensuring the effectiveness of public and defense procurement, as well as the procedures for evaluating procurement activities. It shows the importance of procurement under martial law both for the state’s defense needs and for supporting economic development and facilitating Ukraine’s European integration. The article highlights the challenges of conducting public and defense procurement under martial law. Given the growing role of these processes in ensuring Ukraine’s national security and defense, and the need for efficient use of budgetary resources under significant financial constraints, the article suggests regulatory measures to assess procurement efficiency. It also makes other recommendations to increase the efficiency of public and defense procurement, including professionalization of procurement activities, creation of a unified procurement vertical in the Ministry of Defense of Ukraine, digitalization of processes of material and financial resources accounting, etc. It emphasizes that the implementation of these measures can contribute to economic growth, efficient use of the budget and strengthening of Ukraine’s defense capabilities.
Conclusions. The research confirms the importance of reforming the system of public and defense procurement in Ukraine. The proposed optimization paths can significantly improve the efficiency of these processes, playing a key role in supporting economic growth and ensuring national security.
Keywords: public procurement; defense procurement; martial law; procurement efficiency; efficiency assessment; Ministry of Defense of Ukraine; procurement system improvement.
References:
- Verkhovna Rada of Ukraine. (2024). Budget Code of Ukraine. № 2456-VI. Retrieved January 30, 2024. https://zakon.rada.gov.ua/laws/show/2456-17#Text.
- Verkhovna Rada of Ukraine. (2024). On Public Procurement: Law of Ukraine. № 922-VIII. https://zakon.rada.gov.ua/laws/show/922-19#Text.
- Verkhovna Rada of Ukraine. (2024). On Defense Procurement: Law of Ukraine. № 2419-VIII. https://zakon.rada.gov.ua/laws/show/808-IX#Text.
- Cabinet of Ministers of Ukraine. (2024). On Approval of the Special Features of Public Procurement of Goods, Works and Services for Customers Provided for by the Law of Ukraine “On Public Procurement” During the Legal Regime of Martial Law in Ukraine and Within 90 Days from the Day of Its Termination or Cancellation. № 1178. https://zakon.rada.gov.ua/laws/show/1178-2022-%D0%BF#Text.
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- Hulak, O. V., Artemenko, O. V., & Svitlychnyi, O. P. (2023). Legal Mechanism of Public Procurement in the Defense Sphere of Ukraine. Academic Visions, https://academy-vision.org/index.php/av/article/view/228.
Received: 30 January 2024
How to quote this article? |
Cherevatyi T. (2024). Efficiency of Public and Defense Procurement in Ukraine: Realities and Ways to Optimization. Modern Economics, 43(2024), 151-158. DOI: https://doi.org/10.31521/modecon.V43(2024)-20. |