Promoting competitive markets:the role of public procurement

The study presented here examines how public procurement agencies address establishing and maintaining competitive markets; a topic still in its academic infancy. Cases are used to address impediments and improve understanding of strategic priorities in managing for competitive markets. Public policy academics have observed many competing policies in the wider public sector. Specifically, this paper identifies a need for research on supplier incentives at a market level, on the post contract management of suppliers and as an important sub-set, key supplier relationship management, along with professional development.

Public procurement:international cases and commentary

In many countries and sectors, public procurement is developing from a functional orientation to an effective socio-economic policy lever. There is a great interest among managers and academics to learn from other countries’ and other sectors’ change initiatives and how they dealt with the challenges they encountered. This text provides such learning opportunities, presenting case studies of public procurement, covering diverse nations, sectors and issues. The cases are combined with editorial commentary and contextualizing chapters to assist the student reader in understanding this complex topic. The text combines descriptions of cases of public procurement with cross case analysis to draw out the key dimensions to enable further examination of the central themes. Each case study concludes with three questions to aid its use as a teaching and training text. Edited by a team of internationally recognised experts in the field this innovative text illustrates the strategies and innovations within public procurement on a global scale and highlights common problems that all countries encounter. Public Procurement is vital reading for anyone with an interest in this topical area.

From recession to renewal:the impact of the financial crisis on public services and local government

Book review of From Recession to Renewal: The Impact of the Financial Crisis on Public Services and Local Government, Joanna Richardson (Ed). Bristol, Policy Press, 2010, ISBN 9781847426994

Exploring innovation in policy-making within central government:the case of the UK's Highways Agency

The first and main contribution of this article is its access to the decision-making processes which drive innovation in policy-making within central government. The article will present a detailed case history of how the innovation came about and conclude by highlighting analytic possibilities for future research. The policy in focus is the UK’s Traffic Management Act 2004, which passed responsibility for managing incidents on major roads from the police to the Highways Agency (HA), and has been interpreted as a world first in traffic management. The article tracks the Traffic Management Act 2004 from problem identification to a preliminary evaluation. It is then suggested that future research could explain organizational change more theoretically. By taking a longitudinal and multi-level approach, the research falls into a processual account of organizational change. The second contribution of the article is to highlight two novel ways in which this approach is being applied to policy-making, through an institutional processualist research programme on public management reform and empirical investigations using complex systems to explain policy change.

Public administration in an age of austerity:the future of the discipline

Reflecting changes in the nature of governance, some have questioned whether Public Administration is now an historical anachronism. While a legitimate debate exists between sceptics and optimists, this special issue demonstrates grounds for optimism by indicating the continuing diversity and adaptability of the field of Public Administration. In this introduction, we first sketch the variety of intellectual traditions which comprise the field of modern Public Administration. We then consider institutional challenges facing the subject given considerable pressures towards disciplinary fragmentation, and ideological challenges arising from a new distrust of public provision in the UK. Despite these challenges, Public Administration continues to provide a framework to analyse the practice of government and governance, governing institutions and traditions, and their wider sociological context. It can also directly inform policy reform - even if this endeavour can have its own pitfalls and pratfalls for the 'engaged' academic. We further suggest that, rather than lacking theoretical rigour, new approaches are developing that recognise the structural and political nature of the determinants of public administration. Finally, we highlight the richness of modern comparative work in Public Administration. Researchers can usefully look beyond the Atlantic relationship for theoretical enhancement and also consider more seriously the recursive and complex nature of international pressures on public administration. © The Author(s) 2012 Reprints and permissions: sagepub.co.uk/journalsPermissions.nav.

Foreign direct investment and corruption

In the last few decades, the world has witnessed an enormous growth in the volume of foreign direct investment (FDI). The global stock of FDI reached US$ 7.5 trillion in 2003 and accounted for 11% of world Gross Domestic Product, up from 7% in 1990. The sales of multinational enterprises at around US$ 19 trillion were more than double the level of world exports. Substantial FDI inflows went into transition countries. Inflows into one of the region's largest recipient, the Russian Federation, almost doubled, enabling Russia to become one of the five top FDI destinations in 2005-2006. FDI inflows in Russia have increased almost threefold from 13.6% in 2003 to 35% in 2007. In 2003, these flows were twice greater than those into China; whilst in 2007 they were six times larger. Russia's FDI inflows were also about 2.5 times greater than those of Brazil. Efficient government institutions are argued by many economists to foster FDI and growth as a result. However, the magnitude of this effect has yet to be measured. This thesis takes a Political Economy approach to explore, empirically, the potential impact of malfunctioning governmental institutions, proxied by three indices of perceived corruption, on FDI stocks accumulation/distribution within Russia over the period of 2002-2004. Using a regional data-set it concentrates on three areas relating to FDI. Firstly, it considers the significance, the size and the sign of the impact of perceived corruption on accumulation of FDI stocks within Russia. Secondly, it quantifies the impact of perceived corruption on the volume of FDI stocks simultaneously estimating the impact of the investment in public capital such as telecommunications and transportation networks on FDI in the presence of corruption. In particular, it addresses the question whether more corrupt regions in Russia are also those that could have accumulated more of FDI stocks, and investigates whether those 'more corrupt' regions would have had lower level of public capital investment. Finally, it examines whether decentralisation increases or decreases corruption and whether a larger extent of decentralisation has a positive or negative impact on FDI (stocks). The results of three studies are as follows. Firstly, along with market potential, corruption is found to be one of the key factors in explaining FDI distribution within Russia between 2002 and 2004. Secondly, corruption on average is found to be related to FDI positively suggesting that it may act as speed money: to save their time foreign direct investors might be willing to bribe the regional authorities so to move in front of the bureaucratic lines. Thirdly, although when corruption is controlled for, the impact of the latter on unobservable FDI is found to be on average positive, no association between FDI and public investment is observed with the only exception of transportation infrastructure (i.e., railway). The results might suggest therefore that it is possible that not only regions with high levels of perceived corruption attract more FDI but also that expansions in public capital investments are not accompanied by an increase of the volume of FDI (stocks) in regions with high levels of corruption. This casts some doubt on the productivity of the investment in public capital in these regions as it might be that bureaucrats may prefer to use these infrastructural projects for rent extraction. Finally, we find decentralisation to have a significant and positive impact on both FDI stock accumulation and corruption, suggesting that local governments may spend more on public goods to make the area more attractive to foreign investors but at the same time they may be interested into extracting rents from foreign investors. These results support the idea that the regulation of FDI is associated with and facilitated by a larger public sector, which distorts competition and introduces opportunities for rent-seeking by particular economic and political factors.

Achieving continuous improvement through self-assessment

In 2007 the UK Office of Government Commerce was mandated to carry out Procurement Capability Reviews (PCR) across the 16 top spending UK Government Departments. Since then, this programme has evolved into a self assessment based approach which is markedly different from the original approach. Will the move from a centre-led strategic review of procurement capability to a department-led model based on self assessment continue to strengthen and improve procurement capability across Central Civil Government? OGC is currently working with UK Government Departments to carry out their PCRs using a self-assessment tool which incorporates qualitative and quantitative measures. Results are generated based on a capability maturity model. The results are assured independently. OGC expectations are that tangible and measurable capability improvements will be realised when departments embed the self-assessment model and implement the findings as part of a continuous improvement regime. This paper is a case study, using some relevant literature to reflect on past and possible future development of the PCR self assessment scheme.

건설 프로젝트 프로세스 관리 효율화를 위한 영국과 미국의 BIM 현황 분석

World-wide efforts have been made to adopt BIM (Building Information Modelling) to improve the efficiency of construction project management processes lively. BIM means a shared digitized expression which provides a reliable source to make an informed decision over a physical or a functional character across all construction sectors including design, civil engineering and plant construction. The Korean Public Procurement Service mandates to use BIM for over 50 billion won public construction projects from 2012, and this will be extended to every project initiated by the Korean Public Procurement Service from 2016. This paper aims not only to investigate potential barriers which can be faced at the initial stage of BIM adoption, but also to explore possible solutions against them. For doing this, the BIM utilization strategies and action plans by US and UK public sectors which adopt BIM earlier than Korea were analysed. Based on the results of comparative analysis between US and UK, the proper guideline for BIM adoption in Korea will be suggested.

Appropriate wage rate and related issues for employment intensive public works programmes in Timor Leste

Employment generating public works (EGPW) are an important part of GoTL’s strategy to reduce unemployment, underemployment and poverty and contribute to social stability. The term EGPW is used in this report as a generic term to encompass labour intensive (LI) and labourbased (LB) approaches. The distinction between these approaches is made below. SEFOPE is being supported by a number of international agencies to develop and implement employment generating public works programmes (EGPWPs). Other government ministries and agencies and NGOs offering different wage rates are also engaged in such programmes and projects. In setting wage rates for such programmes, it is necessary to take account of (a) the nature of benefits they offer (e.g. the balance between employment creation and effective use of labour); (b) the beneficiaries to be targeted, and (c) any adverse impacts on other economic activities. The purposes of this assignment are: (a) to make recommendations on appropriate wage rates for unskilled casual employment on public works programmes, and (b) make a broad assessment of the labour supply response to the employment opportunities created by employment intensive programmes. The latter would help in gauging the scale of such activities required.

Ingroup and outgroup minorities:differential impact upon public and private responses

The experiment which is presented in this paper was designed to overcome some of the problems associated with previous research investigating the effects of social categorization and minority influence. Sixty-eight fourteen-year-old British Secondary School pupils indicated their attitudes towards a 'grant for pupils' before and after reading a text which advocated a minority position. The text was attributed as being the work of either pupils from their own school (ingroup minority) or from a school they discriminated against (outgroup minority). Responses were either made in ‘public’ (by telling subjects that other pupils would see their responses) or in ‘private’ (by subjects putting their responses into a ‘ballot box’). The results showed that on public responses ingroup minorities had more influence than outgroup minorities while there was no difference on private responses. Also, greater change occurred when responses were made in private than in public. These results are compatible with the intergroup analysis of minority influence.