On the application of the social order mechanism in conditions of limited competition in the markets of social services.
Year: 2025
Type: article
Abstract: One of the most pressing issues in public finance management is the need to improve the quality and efficiency of the provision of public (municipal) services in the social sphere. A promising tool for modernizing the existing mechanism for delivering such services is the social order, aimed at expanding the use of competitive procedures when selecting implementing organizations, including for services related to social assistance and employment support. The author of the article examines the implementation of the social order under the established parameters of municipal social service markets. Particular attention is given to the analysis of the practice of applying the social order in regions that are most actively implementing competitive selection procedures through social certificates: documents that allow service consumers to independently choose their provider while maintaining budget financing. The article's conclusions are based on the analysis of data concerning the spatial distribution of state (municipal) institutions across municipal entities. The results of this distribution are further analyzed in regions implementing the social order using specific competition analysis methods, such as the Herfindahl–Hirschman Index and concentration index. The analysis confirms the limited nature of competition among state (municipal) institutions in the markets for social services and employment support in most municipal entities. Meanwhile, a local competition analysis in larger municipalities (administrative centers of regions) showed a qualitative change in the degree of market concentration for social services when both state (municipal) institutions and non-state providers are involved through the social certificate. Based on the findings, conceptual recommendations are proposed for organizing the application of social certificates in regional markets, which include indications of the general characteristics of the selected services and municipalities among which social certificates will be distributed. These recommendations will be useful for regional sectoral authorities responsible for approving and executing the social order.
Author: Pavel Denisovich Romaikin
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4416132904