After the Rain : how the West lost the EastVaknin, Samuel
History
After the Rain : how the West lost the East
Vaknin, Samuel
Europe, Eastern -- Economic conditions -- 1989-; Europe, Eastern -- Politics and government -- 1989-
The first order problem is the allocation of scarce resources. In other
words, prioritising. The needs are enormous and ever growing. The US
government purchases hundreds of thousands of separate items from
outside suppliers. Just the list of these goods - not to mention their
technical specifications and the documentation, which accompanies the
transactions - occupies tens of thick volumes. Supercomputers are used
to manage all these - and, even so, it is getting way out of hand. How
to allocate ever-scarcer resources amongst these items is a daunting -
close to impossible - task. It also, of course, has a political
dimension. A procurement decision reflects a political preference and
priority. But the decision itself is not always motivated by rational -
let alone noble - arguments. More often, it is the by product and end
result of lobbying, political hand bending and extortionist muscle.
This raises a lot of hackles among those who feel that were kept out of
the pork barrel. They feel underprivileged and discriminated against.
They fight back and the whole system finds itself in a quagmire, a
nightmare of conflicting interests. Last year, the whole budget in the
USA was stuck - not approved by Congress - because of these reactions
and counter-reactions.
The second problem is the supervision, auditing and control of actual
spending. This has two dimensions:
1. How to make sure that the expenditures match and do not exceed
the budgetary items. In some countries, this is a mere ritual formality
and government departments are positively expected to overstep their
procurement budgets. In others, this constitutes a criminal offence;
2. How to prevent the criminally corrupt activities that we have
described above - or even the non criminal incompetent acts which
government officials are prone to do.
The most widespread method is the public, competitive tender for the
purchases of goods and services.
But, this is not as simple as it sounds.
Some countries publish international tenders, striving to secure the
best quality in the cheapest price - no matter what is its geographical
or political source. Other countries are much more protectionist
(notably: Japan and France) and they publish only domestic tenders, in
most cases. A domestic tender is open only to domestic bidders. Yet
other countries limit participation in the tenders on various
backgrounds: the size of the competing company, its track record, its
ownership structure, its human rights or environmental record and so
on. Some countries publish the minutes of the tender committee (which
has to explain WHY it selected this or that supplier). Others keep it a
closely guarded secret ("to protect commercial interests and secrets").
Public-domain text, read in full here on John Shaqi.
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