Ekonomski značaj javnih nabavki
ECONOMIC SIGNIFICANCE OF PUBLIC PROCUREMENT

Summary/Abstract: Economics and politics are intrinsically related, with the apparent supremacy of politics over economics, speaking from our experience, as well. The state-owned enterprises represent enterprises in the public domain. The reasons for their set-up are numerous. The ownership rights of public companies are not often a part of the capital markets. This reduces the entrepreneurial interests and monitoring mechanisms. The public sector shows lower sensitivity to all types of risk. Markets and market institutions have an important role in public enterprise over a private one (money market, capital market, investment risk, sensitivity to interest rate and losses). Public companies show a greater preference for investing pills too freely, thus decreasing the efficiency of capital. Government often embarks upon investments - military industry, space exploration, reclamation, infrastructure etc. These investments are of social significance, but they are not profitable. Annually, the government spends billions of dollars on these projects, but they are exposed to corruption and non economic spending of the taxpayers’ money. Provision of goods and services or project allotment by a public authority, organization, institution or other legal entity is called - public procurement.

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