RESOLUTION OF SOCIAL PROBLEMS USING PUBLIC PROCUREMENT

Лариса ЛАЗЕБНИК Университет Государственной Фискальной Службы Украины

Abstract

The Ukraine public sector spends over £270 bn annually procuring goods and services which account for 12 percent of GDP. Most public money spent is through traditional procurement. At present it is necessary to direct public money towards solving public issues. The difference between traditional procurement and social ones or environmental procurement through government, is that the latter has the twin goals of catalyzing enterprises and solving public problems. Social procurement – is public organization’s procurement policies choosing to purchase a social outcome when they buy a good or a service. Social procurement can occur in a number of ways, including: procuring from social enterprises; including a clause in procurement policies that requires tenders to be assessed in according to the social impact they create; requiring successful tenderers to employ a certain percentage of people from disadvantaged backgrounds in their workforce. Needed to find a valid answer to the question: what additional benefits are to be achieved; determining to what extent these benefits are valued, and will therefore be prioritised by the purchasing organisation. The public sector plays a key role in our society, so the potential for value creation is huge. Keywords: public procurement, public procurement, public funds, social purchases.