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Svetlana Suslova 23 /09/2014

THE QUASI-MARKETS OF SOCIAL SERVICES: THE COMPETITIVENESS OF RUSSIAN NONPROFIT ORGANIZATIONS AGAINST FOR-PROFIT ORGANIZATIONS AND PUBLIC PROVIDERS. Svetlana Suslova 23 /09/2014. Motivation.

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Svetlana Suslova 23 /09/2014

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  1. THE QUASI-MARKETS OF SOCIAL SERVICES: THE COMPETITIVENESS OF RUSSIAN NONPROFIT ORGANIZATIONS AGAINST FOR-PROFIT ORGANIZATIONS AND PUBLIC PROVIDERS Svetlana Suslova 23/09/2014

  2. Motivation • Public service delivery via quasi-markets has become one of the main elements of ‘new public management’ • Nonprofits play a growing role in social service delivery because of their specific features • Less attention has been paid to how nonprofit involvement in government social service develops in transition economies, such as Russia, than in developed countries

  3. The aim: to investigate whether nonprofits are successful when they have to compete with other social service providers for government contracts

  4. Theoretical Background • The quasi-market implementation as a way to improve the efficiency of government (Le Grand; Kitchen; Domberger & Jensen; Lowery; Dehoog) • The competition level in social service quasi-markets (Savas; Lamoth) and the factors of contracting out to nonprofits in advanced countries (Lamothe & Lamothe; Feiock & Jang; Hefetz & Warner) • Nonprofits involvement in social service delivery (Kendall, Knapp & Forder; Feiock & Jang; Frumkin, Francois; Pestoff & Brandsen)

  5. Data and Methodology Data on social services tendering in eight Russian regions over the period 2011-2012 Sourse of the data: Official website of Russian Federation on procurement information, http://zakupki.gov.ru Final data set consists of 786 observations (‘consistent tenders’) Method: examination of tender bid evaluation records

  6. Table 1. Size of nonprofit sector in the Russian regions

  7. Table 2. Size of social service quasi-markets in the Russian regions

  8. Table 3. The numbers of tenders with nonprofit bidders

  9. Table 4. Level of competition in tenders with nonprofit bidders

  10. Table 5. Bidders of the tenders

  11. Table 6. Competitiveness of nonprofit bidders

  12. Conclusion (1) • Significant discrepancies in the scope and size of the competitive bidding exist between these eight Russian regions • The vast differences in the activity of nonprofit organizations as bidders, and in the intensity of competition between them and other providers in the regional social service quasi-markets were found

  13. Conclusion (2) • The structure of regional quasi-markets is the essential factor of nonprofit organization involvement • In many cases, nonprofit organizations can be competitive in terms of competitive bidding in Russia • Competitive bidding in social service provision in many cases, in the period in question, did not give nonprofit organizations the opportunity to enjoy their advantages as services providers

  14. Thank you for your attention

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