Eurasian Economic Perspectives

Table of Contents

1. Frontmatter

2. Public Economics

   1. Frontmatter

   2. Corruption in France: Characteristics of the Phenomenon and Statistical Data

      Joanna Brzezińska

      Abstract

      The aim of the study is to analyse the phenomenon of corruption in France that remains one of the most modern pathologies associated with the globalization process in the economy. Its development is currently determined by huge growth of international transactions. Corruption affects individuals acting on behalf of any organisation that may make beneficial economic decisions in exchange for obtaining material or personal benefits, or the promise of receiving them for making a particular decision. It is therefore always a violation of the performance of duties falling within the scope of one’s work. One of the most dangerous dimensions of corruption is currently known as great corruption, which relates to economic and political elites. This article will present organisations, whose objective is to combat corruption in France (Central Service for the Prevention of Corruption—SCPC) and the estimated scale of corruption, which is constantly increasing. According to statistical data, there are 150–200 cases of convictions due to corruption recorded each year, but the real figure for this pathology is much higher, indicating clearly insufficient tightness of the law on economic regulations in this area.

   3. Economics, Competition and Coopetition of the Italian Private Welfare State: A Cluster Analysis

      Angela Besana

      Abstract

      At crisis times, Public Welfare States are not more enough in order to support the growth of the social and nonprofit economy. This article addresses pivotal and different roles of the Welfare State of private grant-makers in Italy, when competition is not more useful in order to solve allocation of scarce public and private resources. Thanks to coopetition by means of networks, partnerships with several stakeholders, pooling of resources and project leadership, the Private Welfare State of Italian Foundations of banking origin (IFBOs) will be clustered for 2012s performances. Economic performances concern financial assets, which affect solvency, gains and philanthropy. According to reports coopetition is estimated for intensification from pure grant-making and resource pooling to partnerships. Six profiles are significant. When investments are modest, these foundations are profitable and solvent, though coopetition is not optimized. Increasing investments are combined with increasing philanthropy and coopetition. The article concludes that profiles experience a different intensity of coopetition. Findings constitute practical insight into the issue of philanthropic best practices in crisis times.

   4. Expenditure on Education in the Countries of the European Union in the Light of the Europe 2020 Strategy

      Katarzyna Maj-Waśniowska

      Abstract

      The paper looks at education policy in the European Union (EU) in the light of the Europe 2020 strategy. The research concerned in particular the scope of EU education policy, its objectives and methods used to measure whether strategy goals are being achieved. The paper examines the following hypothesis: the level of expenditure on education is essential for achievement of EU policy objectives by the Member States of the European Union. To test this hypothesis, EU education policy objectives are described and the methods used in implementing them are presented. This is followed by an analysis of the level of public spending on education in the selected EU countries along with the degree to which European benchmarks have been achieved by individual countries. Statistical methods are used to analyze the correlation between the data. The study found that the variation in the level of spending on education is reflected in the degree to which the individual EU countries have achieved the benchmarks. In addition, the results of research support the conclusion that the degree to which the objectives have been achieved is also determined by objective factors. These include the structure of the education system, management methods, constitutional frames, and by political factors under state policy (reforms implemented, amendments to legal provisions). In conclusion, the progress individual countries have made in achieving EU education policy objectives has been positive.

   5. Permitted Modifications of Public Contracts in the EU Court of Justice Case Law and in the New Directives of Public Procurement Law

      Krzysztof Horubski

      Abstract

      The new EU directives of public procurement law, which the implementation period expires in April 2016, for the first time in the history of regulation this area of the EU internal market introduced rules concerning the exercise of public contracts. The legal framework of this regulation also covered the issues modification of public contracts during their execution. The rules defining the scope of the admissibility of such changes represent an attempt to find the right formula between the striving for effective execution of the contract in the situation of the need to adapt to changing conditions and requirements of equal treatment and procedural transparency to entities interested in the execution of contracts a given type. The importance of this issue for the protection of the public procurement market competitiveness and fairness to compete for contract in the procurement procedures was noticed in the case law of the Court of Justice of the European Union (CJEU) for many years. The importance of this issue for the protection of the public procurement market competitiveness and fairness to compete for order in the proceedings for many years noticed in the case law the CJEU. The aim of the article is to illustrate the development and evolution of EU jurisprudence on these issues and to show what effect this process has received in legal regulation of the new law on public procurement directives.

   6. Interdependence of Macroeconomic Indicators and Inequality in Kazakhstan and its Main Trading Partners

      Bulat Mukhamediyev, Tatyana Kudasheva, Azimzhan Khitakhunov

      Abstract

      For the current stage of development of the world economy, a high degree of interdependence of macroeconomic indicators across countries is characterized. Business cycles pulse transmission can occur through many channels. They can occur as a result of observed shocks of global factors, such as the world price of oil, food products, and unobservable factors, such as the spread of new technologies. In the report the aim is to reveal the relationship of macroeconomic indicators of Kazakhstan and its main trading partners on the basis of a global vector autoregression model. The model includes 12 countries: Kazakhstan, China, Russia, Austria, Belgium, Finland, France, Germany, Italy, Netherlands, Spain and the United States. For its construction quarterly data for 1995–2013 years were used. Shocks of variables such as real GDP, inflation, short-term and long-term nominal interest rates, real exchange rate, Gini index, and responses to them in all countries are considered. Also, world oil price shocks has a strong influence. The constructed model makes it possible to assess the impact of the various shocks that arise in partner countries on macroeconomic performance in a small economy, including socio-economic indicators, such as income inequality. In particular, it became clear that a positive shock in real GDP in each country reduces inequality in the country and in other countries. Positive shocks to Russia Gini Index has also increased income inequality in Kazakhstan.

   7. Access to Public Procurement Contracts in EU: Perspective of SMEs

      Sebastian Bobowski, Jan Gola, Wojciech Szydło

      Abstract

      The aim of the paper is to study public procurement market in the European Union (EU) from the perspective of small and medium sized enterprises (SMEs). An important component of the analysis is the European Code of Best Practices Facilitating Access by SMEs to Public Procurement Contracts of 2008, providing guidelines and good practices, and ongoing public procurement reform. SMEs are found as significant source of jobs, growth and innovation, thus, their share in public procurement should be higher than the current 45% of aggregate contract value above EU thresholds. Thus, SMEs perform much below their economic weight. Considering the fact, that public expenditures on goods, services and works account for approximately 14% of the EU’s GDP, public procurement may be recognized as the important trigger of economic recovery after the global crisis 2008+. Worth mentioning, public procurement may contribute to realization of the key EU2020 horizontal policies, focused on establishing more green, innovative and socially-inclusive economy. A key objective of newly established legislative measures is to open-up national public procurement markets to companies from the other EU countries, including cross-border procurement. Among important solutions aimed at enhancing higher participation of SMEs in the EU public procurement market there are, among others, fragmentation of contracts, reduction of turnover required to enter tender procedure and simplification of documentary requirements.

   8. Control of Public Procurement in the European Union: Selected Problems

      Jan Gola

      Abstract

      Public procurement now forms a significant part of the market in economic terms (component of the free market economy). Its importance is increasing continuously due to value of contracts to be awarded, thus, many companies perceive such contracts as the key method for staying afloat on the market. The above brings about a growing competition in the public procurement market, encouraging pathological behavior fully focused at winning contracts, i.e. corruption. Note that the scope and degree of pathological phenomena in the public procurement system is largely influenced by applicable legislation in this field. Admittedly, regularly introduced legal institutions intended to reduce improper behavior proved to be partly ineffective. Curbing the risk of irregularity in the field of public procurement requires a multi-faceted impact, including efficient checks by the special bodies. The paper offers a review of the existing juridical solutions of EU law in respect of the analyzed subject. Relevant regulations of Polish law will be also discussed in this context.

   9. Freezing of Assets as a Counter-Terrorism Measure in the EU After Al-Aqsa Judgment of the Court of Justice

      Wojciech Szydło

      Abstract

      The judgment of the Court of Justice of the EU (“the CJEU”) in the Al-Aqsa case is yet another ruling where the CJEU examines the measures of EU secondary law providing for the freezing of assets of persons and entities suspected of financing terrorism as to their compatibility with EU primary law, particularly with the EU fundamental rights. The stance taken here by the CJEU constitutes an occasion to re-think some very controversial issues regarding the EU’s fight against financing terrorism, including the following: what is the legal status of UN Security Council resolutions in the EU legal order, and whether and, if so, to what extent the EU courts are authorized to assess the compatibility of these resolutions and/or EU acts implementing them with the EU Treaties, with other sources of EU primary law, or possibly with other points of reference, including some norms or principles of public international law; whether we should accept that the CJEU still lowers the standard of protection of the parties affected by the freezing of assets, especially in comparison with its earlier rulings; and whether the allocation of competences between the EU institutions and Member States in the discussed field is indeed optimal.

   10. The Impact of Pension Reforms on Public Finance in Poland

       Katarzyna Owsiak

       Abstract

       The aim of this article is to analyze the impact of pension reforms in Poland on the General Government deficit and debt. This issue is important from the point of view of demographic changes, and the pace of economic development, as well as the current and future state of public finances. These factors are crucial to the security of the pension system and the quality of life of future pensioners. On 19th June 2015, the Ecofin Council decided to retract applying the Excessive Deficit Procedure to Poland. As a result of the Excessive Deficit Procedure being imposed upon it, Poland took steps to reduce its deficit through structural reforms—extending the retirement age to 67 years of age and making the retirement age the same for men and women, and reforming the open pension funds (OFE). However, when assessing the effects of the recent pension reform of 2014, it is worth mentioning the previous reforms. The first pension reform, in place since 1999 has proven to be a serious burden to the state budget due to the high costs of the funded pension scheme (OFE), contributing to an increase in public debt. Therefore, in 2011, the government proposed further changes in the pension system, which turned out to be insufficient to improve the state of public finances. Analyzing the next OFE reform of 2014 it is worth noting that OFE transferred to the Social Insurance Institution (ZUS) assets with a market value of PLN 153.2 billion. This operation transformed Poland’s visible public debt into the state's future liabilities towards its pensioners (so called hidden debt).

   11. Cluster Policy in Japan: Experiences and Prospects

       Marcin Haberla

       Abstract

       The promotion of cluster structures in Japan has risen in importance in the face of growing global and regional challenges in the field of competitiveness and innovation. Innovation policy-oriented clustering involved central and local government structures, allowing for cooperation with a broad range of public and private organizations and business representatives. The main purpose of this article is to present the cluster policy in Japan and an indication of the role the Ministries of MEXT and METI play in this area. Additionally, this paper will introduce the evolution and prospects of the Japanese clustering policy.