Strategic public procurement as an instrument of development policy

Abstract

As a result of the 2014 reform of the EU public procurement system, there has been a paradigm shift in public  procurement law. The 2014 Directives underlined that public procurement plays a key role in implementing the EUROPA  2020 strategy, as one of the market-based instruments used to achieve smart, sustainable and inclusive growth while ensuring the most efficient use of public funds. Strategic public procurement, related to the implementation of the principle of sustainable development and the promotion of innovation, has been recognized as one of the basic elements of the investment environment and a strategic instrument in the economic policy toolkit of each Member State. As a consequence of the implementation of the 2014 directives,
changes have been made to the Polish public procurement law. The Act of 11 September 2019 put more emphasis on the implementation of the Best Value for Money principle while simultaneously focusing on the principle of sustainable development. However, the mere regulation of public procurement law instruments is not sufficient to use the potential of strategic public procurement for the needs of development policy. This article suggests that a well-coordinated state policy should be taken into account in order to improve the efficiency of the procurement process. It also states that the adopting of behavioral economics tools and behavioral law & economic analysis, in order to develop appropriate practices on the public procurement market, might be crucial for correcting the dysfunctions of market mechanisms and achieving socioeconomic development goals.