Transformation of the public procurement and finance system in the digitalization context: what are the risks and opportunities for Ukraine’s economic recovery during wartime?
Abstract
The paper presents a comprehensive analysis of the transformation of Ukraine’s public procurement system in the context of digitalization and post-war recovery. The study aims to substantiate the potential of the ProZorro digital platform as a tool for ensuring transparency, efficiency, and accountability in the use of budget funds in the context of Ukraine’s economic recovery. The author traces the evolution of the domestic public procurement system, noting significant progress in overcoming historical problems of opacity, corruption, and inefficiency through the introduction of the innovative ProZorro solution. At the same time, the article identifies new challenges associatedwith adapting the system to the extraordinary conditions of martial law, particularly the risks of limiting competition due to the growing share of non-competitive procedures. Based on the analysis of ProZorro’s functioning during the war, the author reveals the platform’s potential as an instrument for effective integration and monitoring of the use of international aid for Ukraine’s reconstruction.
Special attention is paid to the prospects of involving domestic small and medium-sized businesses in public procurement through the ProZorro system, which can become a powerful driver of economic recovery in the regions. The article emphasizes the need for synergy between ProZorro and advanced digital technologies, such as blockchain, BIM modelling, and smart contracts, which can provide an unprecedented level of automation, security, and transparency in procurement processes. However, the author substantiates the need for a comprehensive and systematic approach to transforming the public procurement ecosystem, combining technological innovations with improvements in the legal framework, user competence development, and expanded collaboration formats between the state, business, and the public. The conclusions underscore that only with the consistent digitalization of all stages of procurement, integration with other e-government components, and building a space of trust among stakeholders, ProZorro can become a reliable foundation for the fair and sustainable economic recovery of Ukraine.
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References
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