E-Management (May 2019)
Blockchain in the public procurement system
Abstract
Public procurement accounts for a significant share of the country's budget. It is impossible to solve the problem of effective budget spending without establishing a rational and transparent system of public procurement. On the basis of international practice, a system of public procurement has been developed and implemented in the Russian Federation. The relevance of the study of this article is determined by the fact, that a large-scale reform of the practice of public procurement is continued in Russia due to the fact that in January 2014 entered into force a new Federal law dated on April 5, 2013 № 44-FZ “On the contract system in the procurement of goods, works, services for state and municipal needs”. The contract system plays an important system-forming role in Russian society. A free and mutually beneficial economic treaty remains one of the main institutions of the market. For this reason the order of the state and separate types of legal entities forms ecosystem, in which all Russian business develops and under which adapts. One of the fundamental principles of the state procurement policy is the principle of increasing efficiency. Currently the trend of the development of the informal relations, the insufficient level of quality meet the requirements of the society. The existing institutional model of public procurement management in Moscow does not fully ensure in practice the reproduction of the necessary economic and social effects, focusing on economic. The problems of poor quality of procurement management in Moscow require a deep study and evaluation of the necessary level of efficiency of tools to improve economic and social relations in the public sector. The purpose of this article is to develop proposals for improving the mechanism of public procurement. The authors of the article consider the possibility of using blockchain in public procurement. The use of this technology will reduce the time spent on the processing of documentation, reduce the degree of corruption in the process of public procurement, by creating reputational lists available to all participants in this process. In addition, the use of a smart contract allows to minimize the number of intermediaries in the conclusion of public contracts.
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