E-government and e-business integration model in public procurement

Public procurement is one of the most actual problems of economics and potential instrument of successful public policy, which can control money flows and manipulate the appearance of corruption opportunities. By 2010, all EU countries should have been installed electronic public procurement systems and at least 50 percent public procurement should have been made by this way. Thus for a membership of different countries' procurers is essential for EU and domestic economy of the Republic of Lithuania, it enables safe competition in all EU. Implementation of a model of electronic government service like government for business and business for government is related with electronic public procurement, which helps to reduce bureaucracy, simplify formal procedures, save civil servants' time and public money, improve quality of products and services and promote competition between suppliers, public and private sectors partnership. A complex procurement process regulation and control is known all over the world, and therefore the article explores the existing problems in public procurement. The elimination of publicity, bureaucratic professional inflexibility, competitive relationship distortion in the market, complexity of the law base and other factors are likely to create corruption in public procurement. Over the past twenty years, the new public management paradigm dominated in the public administration world, because its followings argued about the new global paradigm’s effectiveness in the context of the fight against bureaucracy. The new Public Management have had to increase efficiency, improve service quality, reduce public management and administrative costs, bureaucracy, redirect attention to customers and enable public sector staff to work in a transparent and responsible manner.The paper analyzes the theoretical context of the electronic public procurement and particular attention is paid to business development and corporate competitiveness in the EU. The article analyzes the relation between e-government and e-business, devoting special attention to the e-business and e-government theory analysis and legal regulation of public procurement in the EU. The authors analyze public procurement, taking into account the experience of Lithuania's membership in the EU, identify the specific problems for small and medium enterprises participation in public procurement