Centralization and decentralization of public procurement

Abstract

Purpose The purpose of this paper is to present and analyze the different concepts of centralized and decentralized procurement methods; identify the advantages and disadvantages of each method and the two methods of public procurement applied in the Arab Republic of Egypt in an attempt to overcome the disadvantages of the Egyptian system; and introduce a new framework for government procurement in Egypt. Design/methodology/approach The descriptive approach was used in the framework of the presentation and analysis of the concepts of centralized public procurement and decentralized public procurement. The comparative approach was used for presenting some of the experiences of countries in using public procurement methods. The legal approach was also used in the analysis of the legal frameworks governing the public procurement methods in the Arab Republic of Egypt. In addition, the case study methodology was used to study the role of the General Authority for Governmental Services in Egypt in the centralized public procurement processes. Findings This paper attempts to find the ideal method of public procurement in general and what is the method to be followed in the Egyptian case through the data presented and analysis of the Egyptian public procurement system. Research limitations/implications This paper attempts to present a model or a theory on how to determine the public procurement methods that should be used in a given country and give sufficient flexibility for the conformity between the two methods upon application depending on the ecological factors of each country. Practical implications This paper contributes to the development of the public procurement method in the Arab Republic of Egypt by showing the gap between the use of the centralized approach and the decentralized approach at all levels and providing solutions to bridge this gap. Social implications This paper provides implications to reduce corruption, increase transparency and give the opportunity to the largest number of private shareholders to participate in public procurement. Originality/value Although there is some literature on centralized and decentralized public procurement, there is a lack or scarcity of research and academic articles on this subject (Patrucco et al., 2017). This paper attempted to do so by filling this gap in this area of research.