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Legal Protection's Influence on Public Procurement: Market Dynamics & Ethical Considerations

Explore the impact of legal protection quality on the public procurement market, examining types of protection, competition, and the application of business logic in tendering procedures. Delve into principles, public interest, and the intersection of competition and legal regulations, emphasizing market dynamics and ethics. Join the discussion on navigating the complexities of public procurement systems to achieve effectiveness, transparency, and economic survival.

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Legal Protection's Influence on Public Procurement: Market Dynamics & Ethical Considerations

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  1. IMPACT OF THE QUALITY OF LEGAL PROTECTION ON THE PUBLIC PROCUREMENT MARKET Tina ERŽEN, Ph. D., IEDC – Bled School of Management, Slovenia Conference on "Public Procurement Review & Remedies Systems“Dubrovnik 24-25 May 07

  2. PP MARKET • Does it exisit SEPARARTELY or is it just a part of the COMMON MARKET ? policies vs. realities

  3. QUALITY OF PROTECTION • TYPES OF PROTECTION of rights of all parties AVAILABLE • CONNECTEDNESS OF THESE TYPES – normative, practical • QUALITY OF TYPES – • availability, • transparency, • purpose of a type, • effectiveness of a type, • cultural embededness, • institutional support.

  4. activity • COMPETITION situation / state of things/ landscape most of human activity > SURVIVAL

  5. ECONOMIC SURVIVAL • PRIVATE ENTITIES • Survival in business ? YES • Where happening ? MARKET PUBLIC ENTITIES Do they have to buy ? YES Where ? MARKET Same market ? YES

  6. THE QUESTION • CAN BUSINESS LOGIC BE APPLIED TO PP TENDERING PROCEDURES? • WHAT IS Tendering procedure? • WHAT IS Public interest? • Is competition (in) Public interest ??

  7. TENDERING PROCEDURE • = steps to be taken when approaching suppliers • DIRECTIVES > general regulation (approach) BUT • BASIC PRINCIPLES OF PP • MAIN AIM OF REGULATION > to achieve EFFECTIVENESS OF PRIVATE SECTOR

  8. TENDERING PROCEDURE • average BEHAVIOUR OF MARKET PARTICIPANTS • ! accessibility of demand and supply • !choice ..... ? drivers ? Economic efficiency lower prices terms of contract customization OBLIGATORY ELEMENTS OF TENDERING PROCEDURE

  9. PUBLIC INTEREST • NO definition in PP regulations (interpretation) all and everything contributing to aims & goals of PP regulation 3 AREAS: efficiency of purchasing public purchasing a sound and viable activity opening-up of market

  10. ECONOMIC EFFECTIVENESS access to all by all value for money BASIC PRINCIPLES P. of Equal treatment/Non-discrimination P. of Transparency P. of Proportionality P. of Mutualrecognition PUBLIC INTEREST vs. BASIC PRINCIPLES

  11. COMPETITION AS PUBLIC INTEREST • effect of BASIC PRINCIPLES: ....just distribution of business opportunities DIR 1992, 1993 > focus on first steps of acquisition process: establishing conditions of supply & demand PREFERENTINAL TREATMENT TRANSPARENCY / NON- DISCRIMINATION

  12. DIR 2004 ...a step forward: more flexibility in designinig terms of business: CONTRACTUAL FREEDOM neccessary for efficient purchasing but LIMITS- Private market: Competition law - Public market: ? Competition law Review authorities through BASIC PRINCIPLES

  13. ANSWER to THE QUESTION • Can business logic be applied to PP tendering procedures? Not only can, but MUST, within the legal framework provided ! + ETHICS & PROFESSIONAL STANDARDS

  14. THANK YOU FOR YOUR ATTENTION

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