Littérature scientifique sur le sujet « Public contracts – European Economic Community countries »

The pandemic caused by the spread of the novel coronavirus has presented challenges to the international community that it has never faced before. The high rate of spread of the infection and the economic, social and political challenges associated with it have pushed individual states and international organisations to the limit in proposing the most effective methods to combat the pandemic. The article examines various examples of government support for vaccine development programs in the United States, the European Union, the United Kingdom, China and Russia, as well as the specifics of using COVID-19 vaccination programs in these countries. Based on the data presented in the article, it is concluded that government support for these programs become one of the most effective ways to increase the availability of vaccines for large-scale vaccination of citizens. Particular attention is paid to aspects of the regulatory environment for vaccine approval in a time of pandemic, the financing of vaccination programs, and international cooperation at WHO and UN level to counter the novel coronavirus pandemic. Additionally, the article analyzes contracts for the supply of vaccines in the United States, the European Union and the United Kingdom. Based on the data presented in the article, a conclusion is drawn about the possible reasons for the delays in the supply of vaccines under contracts concluded by the countries of the European Union. The results of this study can be used in the future to plan other vaccine development programs and strengthen government policy in the field of combating infectious diseases, strengthening public and private partnerships in the health sector.

Received 08.05.2020. Energy has always been of particular importance to the European Union. Meanwhile, up to the beginning of the 21st century, this area had been in exclusive competence of member states, with timid attempts of the European Commission (EC) to receive part of the powers in the energy sphere. The article is devoted to the issues of the EU common external energy policy development that was accompanied by a dichotomy of interests between the member-states, which hardly like the idea of the energy sector communitarisation, and the European Commission, which has been the main driver of supranationalisation of the energy sphere for a long period of time. The author characterizes the main achievements towards the EU common external energy policy, including the law regarding the export of energy to neighboring non-member countries through various organizations, such as the Energy Community, the Eastern Partnership, MEDREG, and launching of the European Energy Union (EEU) in 2015. Special attention is paid to external factors that facilitated the enhancement of the European Commission’s role in the energy sphere. The new era for the EU common external energy policy started in 2015 with the EEU and energy security as one of its priority, partly due to the gas crises and political tension between the European Union and Russia. It is noted that the EEU has facilitated the adoption of some EC’s legal proposals that could not be adopted for a long time, such as the mechanism of consultations on new intergovernmental contracts. In general, the creation of the Energy Union should certainly be seen as strengthening the supranational energy competences of the European Commission. It is concluded that the European Commission has made a significant progress towards a common external energy policy, strongly supported by the public opinion that the European Union should speak one voice with third countries. Despite the lack of legally supported competencies in energy for the EC, it gained authority in different directions of the EU energy policy development. Under these circumstances, the common energy market that has led to energy interdependent of the member states, forces them to cooperate at a supranational level. The author argues that third countries should clearly understand the dynamic and processes of communitarisation of the energy sphere and adopt their cooperation with the European Union based on this knowledge.

Pharmaceutical production is a strategic sector of the EU economy. The authorities of Central and Eastern Europe (CEE) countries that became EU members in 2004 have been building up domestic pharmaceutical industries for purposes of production and distribution of medical drugs (MDs) and medical products (MPs), on the one hand, and government assistance to business entities and public procurement, on the other. The article’s objective is to assess the change in economic performance of the pharmaceutical industry in Poland, Hungary and Czechia after their accession to EU, to make a comparative statistical analysis with Germany, the leader of pharmaceutical production in EU, and to reveal key problems of this industry development in CEE countries, in order to elaborate recommendations for Ukraine on replication of best practices and avoidance of potential risks. Results of research show that pharmaceutical producers (group 54 SITC Rev.4) in CEE countries have been focusing mostly on EU market, with Germany being their main partner. The turnover of high tech pharmaceutical goods in CEE countries has significantly grown after the accession to EU, along with the significantly grown imports of these goods and the increasing negative trade balance. Pharmaceutical companies in CEE countries could increase the salaries and the apparent labor productivity, but the gap between them and Germany in salary and productivity terms still remains too wide. In the studied CEE countries there has been significant increase in pharmaceutical R&D spending, but its estimated share remains quite low compared with average figures for EU (16.1%) and Germany (25.6%). It is substantiated that because the future Agreement between the European Community and Ukraine on conformity assessment and acceptance of industrial products (ACAA agreement, or “Industrial visa-free regime”), which is being negotiated right now, will cover the pharmaceutical industry, the Ukrainian pharmaceutics will gain benefits only given the consolidated endogenous capacities of the industry and firmly established advantages of localization providing stimuli for European companies to create production facilities and R&D centers in Ukraine (including ones for contract-based R&D and productions). It is demonstrated that the inflow of investment and technologies from European pharmaceutical companies is capable of accelerating production start-up and exports of MDs and MPs (as time need not be lost for setting up all the links of the chain), thus adding up to the assets of Ukrainian producers (through transfer of knowledge and skills), but all the above cannot compensate for domestic efforts aimed at creating tangible and intangible assets in the industry. Given its Eurointegration context, Ukraine needs to pursue the policy of increasing the industry’s endogenous capacities and rely on the comprehensive approach (instead of focusing on MDs and MPs) that will cover the following key areas: biological and chemical ingredients, medical equipment, pharmaceutical fillers and packages, equipment and apparatus for pharmaceutical production. This is expected to reduce the dependence of Ukrainian pharmaceutics on imports and eliminate the problem of “truncated industrialization” that can cause structural imbalances, worsen the balance of payments and weaken the national currency.

Purpose The purpose of this paper is to discuss the economic and legal rationale for the use of the competitive dialogue in complex procurement. The authors use the data set of public contracts awarded by European Union (EU) member states between 2010 and 2017 to analyse its usage patterns. In particular, the authors identify the types of contracting authorities that mainly use the procedure, the sectors and contract characteristics and the role of institutional factors related to the country’s perceived corruption and level of innovativeness. Design/methodology/approach The authors discuss economic and legal issues in the use of the competitive dialogue. The authors use a data set of public contracts awarded by EU member states, published on the EU’s public procurement portal Tenders Electronic Daily (TED) to analyse usage patterns and explore the types of contracting authorities that use the procedure, the sectors and type of tenders. The data covers a sample of 1.242.090 observations, which relates to all the contract award notices published on TED in the period 2010-2017 for all the 28 European member states. A probit model is used as a methodology. Findings The empirical analysis reveals that the use of competitive value is greater for larger value contracts, for national rather than local authorities, for the supply of other manufactured products and machinery; for research and development and business, as well as information technology services; and for construction works. The level of perceived corruption and the gross domestic product/capita do not have explanatory power in the use of the procedure, whilst a country’s degree of innovativeness, as measured by the global innovation index, positively affects the probability of adopting the procedure. A decreasing trend in the use of competitive dialogue over time is observed. Research limitations/implications In conclusion, the countries examined benefited from a long tradition of public–private partnerships (PPPs) and from a transposition of the 2004 directive, able to provide an inclusive interpretation of complexity, and therefore, stimulate the adoption of the competitive dialogue in different sectors. Conversely, the countries, which postponed a concrete transposition and the overcoming of the confusing concept of complexity, limited the scope for the application of competitive dialogue, relying on the easier alternative: the negotiated procedure. Those circumstances lead to visible difficulties in stimulating the adoption of the procedure even in the traditional sectors; indeed, only with the new directive’s provisions a slight change in the trend can be seen. Practical implications To foster the use of the competitive dialogue in countries that have so far used it to a limited extent is important to improve upon the definition of complexity and learn from the experience of the top usage countries, as identified in the analysis. Social implications Helping the use of the procedure may facilitate the procurement of complex contracts such as PPPs, and thus, ease the building and management of public infrastructures for the provision of public services. Originality/value The authors are not aware of previous studies that have used the TED data set and studied the law in a number of European countries so as to understand the usage patterns for the competitive dialogue.

The article is devoted to the study of foreign experience in legal regulation of fixed-term employment contracts. Fixed-termemployment contracts should be considered as one of the earliest and, accordingly, the oldest forms of non-standard employment. Tur -ning to the concept of the application of fixed-term employment contracts in Ukraine in the near future, it seems appropriate to consider the possibility of their further development through the prism of studying European experience. Indeed, in many European countriesthe fixed-term contracts are quite common and therefore analysis of both positive and negative examples of their legal regulation willbe useful for the future development of labour legislation in Ukraine.The article features an analysis of the relevant legislation of the United Kingdom, Estonia, Italy, Poland and France. It is concludedthat the membership of these states in the European Union has had a significant impact on the evolution of national labour le -gislation. This also applies to the United Kingdom, which had been part of this economic and political union for a long time.The transposition of EU legislation into national law by these countries predetermines the existence of common features betweenthem in the legal regulation of fixed-term employment contracts. This common features include: clear time limits of the employmentcontract, maximum allowable number of renewals enshrined in law, compliance with the principle of non-discrimination, etc.In turn, the implementation of fixed-term employment relationships in each country differs in its uniqueness, which is due to thedomestic tradition of their implementation. For example, in the United Kingdom, the dismissal of an employee due to the expiration ofthe employment contract is considered through the lens of fairness of the employer’s actions, while in Italy the number of fixed-termemployment contracts with a particular employer cannot exceed 30 %.The above circumstances should be taken into account by Ukraine when reforming labour legislation. Indeed, the need to implementCouncil Directive 1999/70/EC is clearly provided for in clauses 1139 and 1140 of the Action Plan for the implementation of theAssociation Agreement between Ukraine, on the one hand, and the European Union, the European Atomic Energy Community and theirmember states, on the other hand, approved by Resolution of the Cabinet of Ministers of Ukraine No. 1106, of 25.10.2017.

Modern science is based on the study of economic phenomena and tries to quantify them in a measurable way. Econometric models are used for this purpose. The object of this research was to develop econometric models that show the strength of the influence of various factors on the implementation of public-private partnership (PPP) projects in the area of transport infrastructure in France, GB, Germany, the Netherlands and Belgium. The models express the dependence of the value and number of PPP contracts on the value of measurable PPP success factors. Projects with a value of at least EUR40 million were included. A linear model and seven models transformable to linear were used. Four groups of factors were considered as explanatory variables. Fourteen indicators were obtained. Principal components determined based on covariance and correlation matrices were also used. The best models for the number of PPP contracts are linear and hyperbolic I models. For the value of contracts - linear and hyperbolic I and logarithmic models. The best models were indicated taking into account the type of explanatory variables and regardless of the type of explanatory variables. Nine criteria were used to assess the quality of the models. Factors having a significant impact on the value and number of PPP models were identified from the best models. Factors having no significant influence were also indicated.

Several stages can be distinguished in the EU migration policy. Member States within the European Communities have adopted internal regulations on economic migrants. Since the 1980s, the process of regulating the migration problem by the countries of the European Community has begun. The most important activities are TREVI agreement, Schengen, the TAMPERE Program, the Hague Program, FRONTEX, EURODAC, the Integrated Border Management Fund and the European Return Fund. The European Union has demonstrated a global approach to migration. The migration crisis has influenced the emergence of a new immigrant integration policy in Germany, France and the Netherlands. Contracts have been created for immigrants, which force them to learn a language, take up jobs and adhere to the principles of European values and culture.

The purpose of the article is to summarize the experience of developing tools for the implementation of amalgamated territorial communities. The European countries’ experience helps to improve the system of public administration in such a way that it acts in the interests of the individual-citizen and is under the control of civil society. The important factors in the dynamic development of the state is effective public administration at all levels of the administrative and territorial structure of the country are investigated. The main links in this section are the district and regional levels, within which the main socio-economic, political and cultural links are realized and estableshed. The main task of effective regional public administration is to ensure the socio-economic development of the region and to meet the needs of citizens. Methodology. The survey is based on a comparison of data from the EU countries. The competences of local governments in the EU countries are examined. Results. Implementation tools for amalgamated territorial communities have been identified to assess the socio-economic development of the community for investment attractiveness. It has been proved that the amalgamation of territorial communities should be based on the principle of multicriteria, since the main participants in the formation, functioning and further development of the community are people who are united in a team to achieve a common goal, which is to develop the territorial community in order to improve the quality of life. Practical implications. Society will be able only if each of its members clearly understands the possibility of improving the standard of living within the community than existence outside of it. The study has shown that there are the number of criteria, including spatial, temporal, demographic, labor, cultural, historical, financial, that should be considered when amalgamating territorial communities. It is proved that the main instruments of implementation of amalgamated territorial communities are area, population (including demographic structure), income level, level of spending, financing structure, structure of economic entities by types of activity and level of income, number of objects of social infrastructure, employment and community unemployment, etc.

The complex correlation between public debt and economic growth is very important and is a focus of research within the scientific community and among policy makers. The main purpose of this paper is to identify the correlation between the level of public debt and the level of economic growth in select European Union countries. It is an empirical study of the transmission mechanisms and impact of public debt on economic growth in countries which joined the European Union in 2004 or later. The time range of the analyses covers the years 2000–2019. Estimation of the model parameters shows that the level of public debt had an impact on economic growth only in some countries.

Abstract Objectives Surveillance of antibiotic consumption in the community is of utmost importance to inform and evaluate control strategies. Data on two decades of antibiotic consumption in the community were collected from 30 EU/European Economic Area (EEA) countries. This article reviews temporal trends and the presence of abrupt changes in subgroups of relevance in antimicrobial stewardship. Methods For the period 1997–2017, data on yearly antibiotic consumption in the community, aggregated at the level of the active substance, were collected using the WHO ATC classification and expressed in DDD (ATC/DDD index 2019) per 1000 inhabitants per day. We applied a range of non-linear mixed models to assess the presence of changes in the consumption of antibacterials for systemic use (ATC group J01) and eight antibiotic subgroups. Results For the majority of the studied groups, a country-specific change-point model provided the best fit. Depending on the antibiotic group/subgroup and on the country, change-points were spread out between 2000 and 2013. Conclusions Due to the heterogeneity in antibiotic consumption in the community across EU/EEA countries, a country-specific change-point model provided the better fit. Given the limitations of this model, our recommendation for the included countries is to carefully interpret the country-specific results presented in this article and to use the tutorial included in this series to conduct their own change-point analysis when evaluating the impact of changes in regulations, public awareness campaigns, and other national interventions to improve antibiotic consumption in the community.

Defence date: 15 October 2007
Examining Board: Prof. Jacques Ziller, Relatore (IUE) ; Prof. Giuliano Amato, (IUE) ; Prof. M.P. Chiti, (Università di Firenze) ; Prof. Giacinto della Cananea, (Università di Napoli Federico II)
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no abstract available

Defence date: 19 November 2010
Examining Board: Rainer Baubock (EUI); Gerard-René De Groot (Universiteit Maastricht); Marie-Ange Moreau (Supervisor, EUI); Bruno Nascimbene (Università degli Studi di Milano)
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The main objective of this study is to examine the phenomenon of dual nationality in the European Union (EU), particularly against the background of the status of European citizenship - a status that is linked to the nationality of each EU Member State (Article 20(1) of the Treaty on the Functioning of the European Union provides that ‘citizenship of the Union shall be additional to and not replace national citizenship’). The study consists of two parts. The first part (Chapters 1 and 2) sets out the approach towards (dual) nationality in Private International Law and EU Law, in particular by analyzing the case law of the European Court of Justice (ECJ). The second part (Chapters 3- 6) consists of an overview of the dual nationality regimes in four EU Member States - France, Italy, the Netherlands and Spain -, and their possible effects on the EU as a whole. Chapter 2 of the thesis is entitled the ‘intra-EU context’, since it primarily deals with the ECJ’s approach towards a dual nationality consisting of two Member State nationalities. The country reports, on the other hand, deal with the ‘extra-EU context’ because the dual nationality policies of the countries under consideration predominantly affect non-Member State nationals. Thus, France and the Netherlands have for some time already faced the question how to integrate the (Muslim) immigrant population; Italy and Spain have long since adopted a system of preferential treatment for (Latin American) former emigrants and their descendants. The country reports demonstrate how dual nationality is used (or rejected) in these four countries. Finally, the question whether the EU should in time acquire (limited) competence in the field of European nationality law is one of the major themes of this study. Regardless of one’s stance on this question, it must be readily admitted that the subject of Member State autonomy in nationality law is becoming ever more salient with the enlargement of the Union and the growing relevance of European citizenship in the case law of the ECJ. In the opinion of this author, the study shows that the almost absolute autonomy of Member States in the field of nationality law is becoming increasingly problematic for the EU as a whole. Based inter alia on the findings from the country reports, this thesis takes the position that there is arguably a need for the (minimum) harmonization of European nationality laws.

Defence date: 11 July 2008
Examining Board: Gráinne de Búrca (EUI Supervisor) ; Bruno de Witte (EUI) ; Jane Holder, University College London ; Sybille Grohs, European commission, DG ENV
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This thesis argues that the present provisions on public enforcement are inadequate for the effective promotion of compliance with Community law and seeks to provide solutions in order to improve them. Article 226 and 228 EC are both cumbersome and lengthy, particularly with regard to environmental protection. In order to reach this conclusion, the thesis reviews the subject of the enforcement procedure, the infringement itself. It gives a definition of compliance and offers reasons why and how Member States comply or fail to comply with Community rules. It analyses the Commission's role in applying the public enforcement mechanism, before it reviews the problems occurring in the application of Article 228, as the “ultima ratio ultimae rationis” in infringement procedures. Although the Commission attempted several times to clarify the application of that Article, there are still open questions. Environment is the field of law which produces the most enforcement problems and if we find solutions to them, we may be able to use the experiences in other sectors, too. After introducing the main approaches promoting compliance, it is argued that more attention needs to be paid to enforcement than to the managerial approach. Reviewing the managerial instruments reveals that they are more powerful when complemented by enforcement means. Consequently, the thesis focuses upon the latter methods, by referring to the case law on Article 228, which demonstrates the success of the public enforcement procedure. The enforcement mechanism, however, is not perfect, thus a variety of solutions is proposed to make it more effective. Along the lines of the amendments introduced in the Treaty of Lisbon, some improvements to these articles are proposed together with a so-called urgency measure, which empowers the Commission to stop – at an early stage – an infringement that might otherwise mean irreparable damage to the environment.

Defense Date: 08 March 2010
Membres du jury : Professeur Jacques Ziller, Institut universitaire européen (Directeur de thèse IUE / extérieur) Professeur Luis Miguel Poiares Maduro, Institut universitaire européen Professeur Gérard Marcou, Université Panthéon-Sorbonne Paris 1 Professeur Guido Corso,Università degli Studi, Roma Tre
First made available online 25 March 2019
Depuis quelques années, l'organisation des services publics locaux connaît dans la plupart des Etats membres de l'Union européenne d'importantes transformations. D’une part, l'organisation administrative des Etats change et les fonctions des collectivités territoriales sont redéfinies. D’autre part, les formes de la gestion des activités d’intérêt général font l'objet de réformes du fait de l'évolution du contexte normatif. Si des dynamiques internes expliquent en partie ces phénomènes, la part que la réception du droit communautaire joue dans ces développements, est significative. De fait, la libéralisation des services publics nationaux étant largement avancée, les institutions communautaires poursuivent désormais l'ouverture des marchés locaux. Les collectivités territoriales ne peuvent donc plus ignorer les règles de la concurrence et de la libre prestation des services. Or l'organisation traditionnelle des services publics locaux n'est pas toujours conforme à ces principes et nécessite des ajustements, voire des réformes drastiques. Il paraît donc utile d'étudier dans quelle mesure le droit communautaire affecte les services publics locaux, dans une perspective matérielle, c'est-à-dire sur le fond des activités, et d'un point de vue institutionnel, c'est-à-dire sur le rôle des collectivités territoriales. Les normes communautaires imposent-elles un modèle unique de gestion des services? La diversité des formes d'organisation locale est-elle prise en compte et respectée comme l'implique le principe de neutralité? L'encadrement réglementaire communautaire n'est-il pas finalement attentatoire à l'autonomie locale? A travers les exemples français et italien et une étude de secteur sur les transports publics de voyageurs, il appert que l'impact du droit communautaire sur les services publics locaux est tout-à-fait considérable. Cependant il ne faut pas négliger l’effet inverse qui s'illustre par la prise en compte par la Cour de justice et la Commission européenne, des pratiques locales et par la promotion en parallèle, dans le droit primaire de l'Union européenne, des services d'intérêt général et des autorités locales.

Before the harmonization of trade mark law in the EU, the legal traditions in the Member States of the European Economic Community were divided into common law systems and civil law systems, with certain differences also prevailing between the latter. In all countries alike, the original objective underlying the protection of commercial signs had been to indicate property of goods offered in the marketplace or to enable national authorities to control the quality, kind, or amount of production. In the age of industrialization, the concept developed into the notion of signs indicating origin of goods stemming from private enterprises, with the accent being placed on different aspects of that concept. In civil law countries, the emphasis lay on indicating that a particular business had ‘ownership’ of a sign. Thus, the legislature saw its foremost task in establishing a secure and transparent system for the acquisition and maintenance of ownership, and offering trade mark owners the legal means necessary for defending the mark against illicit use by unauthorized others. In common law, the accent lay on the prevention of passing off, which was considered a task in the public interest rather than serving private commercial aims. In contrast to continental civil law, creating a public register and admitting private claims against infringement were not tantamount to acknowledging a proprietary right in trade marks. Instead, these measures were taken to efficiently support the public policy objectives underlying trade mark law.

A country has always been an important factor in the economic processes of a county. With its activity, mechanisms for provision of services, consumption and investment system, its role in the allocation and distribution process of income and wealth, a country directly or indirectly establishes certain relations in the social reproduction process. Because of that it can be said that the country activity reflects on the public, but also on the private sector of a social community. No government, no county, can afford the ease of economic and any other activity taking place past it. A country must take on a lot of tasks, to establish the necessary harmony in all spheres of social activities in a social community. For realization of numerous tasks that are entrusted to one country, it needs certain funds that it collects either with the monopoly of its sovereign authority or in some other way. With the change and development of the county the tax system which is necessary to fulfil its role also changed and developed. In the field of taxation, the Republic of Serbia has no limitations on the scope of its tax jurisdiction. The constitution regulates the subjective financial law of the country, i.e., the right to introduce and collect taxes and prescribe the duty of natural and legal entities to act in accordance with tax regulations. Modern constitutions have established the principle of legality of taxes, which can be expressed by the maxim ‘nullum tributum sine lege’ (‘there is no tax without law’). Thus, Article 91, paragraph 1 of the Constitution of Serbia prescribes that the funds from which the jurisdiction of the Republic of Serbia, autonomous provinces and local self-government units are financed, are provided from taxes and other revenues determined by law. Paragraph 2 of the same article proclaims the rule that the obligation to pay taxes and other duties is general and is based on the economic power of the taxpayer. Therefore, the basic postulates on which the financial right is built are contained in the constitution. It follows that financial law cannot exist without constitutional norms. On the other hand, through tax law, the constitution gained its concretization and realization. The science of financial law is exhibited in numerous monographs, textbooks, studies, discussions, articles, and other publications. Several authors have made a great contribution to the development of this scientific discipline in Serbia, among which the most important are Milan Todorović, Jovan Lovčević, Aleksandar Perić, Miodrag Jovanović, Miroslav Petrović, Dejan Popović, Božidar Raičević, and others.

Grassroots groups in a number of European countries are building Community Wireless Networks (CWN) on small budgets. In underserved regions, CWNs are even surfacing as the principal Internet Service Providers (ISPs). These networks have identified and implemented innovative strategies for providing connectivity—encompassing aspects ranging from software development to infrastructure design and skills training. In other words, these grassroots Wi-Fi networks mobilize human, technical, and financial resources to create sustainable alternatives to telephone and cable companies. This chapter provides an understanding of both the strengths and weaknesses of these initiatives. The authors use data from action research and interviews with leaders and participants of six successful community Wi-Fi networks in Europe. The findings show that these ad hoc initiatives are forcing local incumbent ISPs to lower prices and alter terms of service agreements. In addition, these projects broaden the public sphere, create opportunities for civic engagement, and transfer knowledge among community members. The chapter suggests that community wireless networks should be fostered by governments and the European Union in order for them to function as true alternatives to conventional ISPs, particularly in the last mile. They conclude the chapter with key learned lessons and policy implications.

Throughout history countries have tried to gain power in order to get advantages for the issues such as providing territorial integrity, social security and internal and external security. As a result of this power-gaining race, defense expenditures had a significant place in countries' economies. In its broad sense, defense expenditures are defined as the share reserved from the national income for the country's defense in order to provide internal and external security of the state and maintain the order and safety of the community. The size of defense expenditures varies from country to country for various reasons. In this study the effect of defense expenditures and peace as a global public good on economic growth was analyzed in 11 European Union countries (transition economies) between 2007 and 2017 with the help of panel data analysis. As a result of the study it was found out that there was a positive relationship between economic growth and defense expenditures. However, a negative relationship was identified between economic growth and peace level.

Throughout history countries have tried to gain power in order to get advantages for the issues such as providing territorial integrity, social security and internal and external security. As a result of this power-gaining race, defense expenditures had a significant place in countries' economies. In its broad sense, defense expenditures are defined as the share reserved from the national income for the country's defense in order to provide internal and external security of the state and maintain the order and safety of the community. The size of defense expenditures varies from country to country for various reasons. In this study the effect of defense expenditures and peace as a global public good on economic growth was analyzed in 11 European Union countries (transition economies) between 2007 and 2017 with the help of panel data analysis. As a result of the study it was found out that there was a positive relationship between economic growth and defense expenditures. However, a negative relationship was identified between economic growth and peace level.

This study is devoted to a generalized analysis of modern public processes for the formation of new mechanisms of crisis management and the regional management reform practice in the field of education, which are gradually carried out in the context of general reform and new strategies. The special relevance of modern education management practices is noted, among which are formation of new management concepts in the conditions of emergencies and crisis; redistribution of areas of responsibility between the region and territorial communities; revival of partnership interaction of public authorities with civil society institutions; implementation of state policy through new contexts of forming a network of educational institutions, resource provision and budgeting; strategy for the development of the educational sphere through the implementation of investment infrastructure projects; expanding the scope of educational services in accordance with community requests, etc. European experience in active decentralization, which will stimulate sustainable community development, successful overcoming of crises and building a strategy for regional development shows the development of a systematic vision of the local situation in education and other social spheres that prevent socio-economic crises; active and effective communicative action “state-community”, which is aimed at deep democracy, sustainable development, unity, transparency of public institutions; humancenteredness on the basis of social democracy, involvement of citizens in various government procedures in communities; impact on the sustainable development of local democracy and financial self-sufficiency of the community; sustainable development of the public sector of the community, improving the quality of life / activities / human education. The basis of public activity of the authorities is a consistent communicative action that will promote the in-depth development of mutual trust, openness and efficiency. The subject of the study was the management vertical of the region and education management. The research methodology can be outlined as follows: understanding and worldview, which outline the operating environment of self-discipline analysis, forecasting, modeling, diagnosis and work with information, models, algorithms, cognitive, practical and evaluative, which complement each other in real life. The purpose of the study: to systematically generalize modern management processes of public authorities in anti-crisis strategies and new relevant mechanisms of organizational activities of public institutions of Dnipropetrovsk region, which are aimed at sustainable development of society and man, soft overcoming of growth problems through mechanisms of organizational and managerial overcoming of educational crises. areas in the region. The study found that the systematic activities of public institutions in the region, models of involvement of public institutions contribute to sustainable community development and form effective resilience to crises, restore confidence in government by citizens, improve the quality of local infrastructure projects in education, strengthen positive social trends – economic indicators of the community.

The article is devoted to the studying of the functioning of features of public diplomacy of the Kingdom of Sweden. The author covered the evolution of Swedish public diplomacy as a bright example of «niche» public diplomacy. It has been proved that the initial goal of county’s public diplomacy was to get rid of the negative consequences of the neutrality policy during World War II, and during the 1950s and 1980s – to make the Sweden more visible in the international arena by promoting its national features and interests. The institutional and legal principles and tools for the implementation of public diplomacy are also revealed. In particular, it has been established that the main country’s public diplomacy institutions are: the Swedish Institute, Ministry of Foreign Affairs, Swedish Arts Council, Natioanal Heritage Fund, Team Sweden, Nordic Council of Ministers. Today, Sweden successfully implements its public diplomacy through cooperation with Eastern European countries, among which special attention is paid to the development of relations with European Union, as well as countries in South Africa, the Middle East, Latin America and Asia. The priority areas of country’s public diplomacy are environmental protection, gender equality, education, combating sexual violence and others. Also, a set of theoretical and empirical methods have been used during the study of the topic. Thanks to the use of the historical method, it was possible to investigate the origins, causes and preconditions of the public diplomacy’s institution development. Due to the systematic method, public diplomacy was considered as a set of appropriate tools and mechanisms responsible for improving the image, visibility and attractiveness of the Scandinavian state in the eyes of the world community. With the help of swat analyze it was possible to summarize the advantages and disadvantages, as well as challenges and potential threats of the Swedish public diplomacy. The study object is the public diplomacy as an element of Swedish foreign policy. The subject of the study is the peculiarities of the functioning of public diplomacy in the Kingdom of Sweden. The aim of the study is to analyze the features and prospects of the public diplomacy model of the Kingdom of Sweden. During the research it has been founded that the strengths of Swedish public diplomacy are: convenient geographical location, membership in international organizations (UN, Nordic Council, EU), democratic style in decision making, international corporations that promote products and services associated with Swedish quality and standards (IKEA, Flippa K, H&M, Spotify, Ericsson, COS); great cultural heritage (music, cinema, literature, design, fashion, cuisine); active academic mobility and cooperation, intensive implementation of Internet technologies Web 2.0; attractive tourist infrastructure. Instead, one of the shortcomings are: the weak migration policy, which has led to the large influx of immigrants from Africa and the Middle East, that affects the economic and social climate in the country and further more the blurring of national identity; lack of clear long-term strategy for the development of foreign affairs.

This article explores key sets of drivers of formation of virtual communities in transition economies with particular reference to recent developments in Lithuania. Information and communication technologies (ICT) centered on the Internet are today widely recognized as one of the driving forces in the transition toward a new economic system. This transition has been especially challenging for European transition economies that are in the midst of a historic restructuring in anticipation of entry into the European Union. These countries are confronting a historic challenge of converging to the economic, technological, and organizational practices and standards of their EU counterparts. ICT applications in the form of e-business provide a unique opportunity for companies in these economies to accelerate learning processes for the facilitation of the adoption and implementation of competitive and sustainable e-business strategies. A key challenge in this respect is how to construct sustainable virtual communities that bridge civil society and organizations of the public sector in ways that support the transition toward an ICT-enabled economic system. The central thesis of this article is that virtual communities are a central component of an emerging economic system that is powered by ICT, is knowledge driven, is organized around electronic and organizational networks that generate knowledge, which transform industries and markets, and is dependent on dynamic and flexible regulatory public institutions. For ICT to diffuse throughout the whole economy in a way that supports virtual community formation, business firms, market conditions, and the culture and institutions of society need to undergo substantial change in a coordinated manner. It is the dynamic interdependence of these conditions that is the source of innovation and value creation in the new knowledge-driven economy. The agenda of research on the dynamics of adoption of new economy practices, innovation, and economic growth, as a result, needs to be expanded beyond the level of the firm. It needs to be built around the dynamic interrelationships between technological transformations, firms’ organizational and knowledge-creating capabilities, emerging market and industry structures, and public institutions (Castells, 2000). The article situates drivers of virtual community formation and the necessity of coordinating their development on three levels: the level of ICT infrastructure, regulatory environment, and market or civic attitudes toward ICT-enabled market transactions. On each of these levels the observations made are conditioned by the definitional parameters of “virtual community.” For the purposes of this article, a virtual community is understood as a set of interwoven relationships built upon shared interests, which satisfies members’ needs otherwise unattainable individually (Rafi, Fisher, Jaworski, & Cahill, 2002). It must be stressed that a virtual community thus defined refers not only to consumers but also businesses and organizational entities of the public sector.

Information and communications technologies (ICTs) are playing an increasingly vital role in the daily lives of all communities by revolutionizing their working procedures and rules of governance. ICTs offer a unique opportunity for governing elite to overcome the crisis of representative democracy, as ICT and the Internet empower civil society to play its role more effectively and facilitate the performance of governments’ main function-serving the people who elect them (Misnikov, 2003). In the realm of government, ICT applications are promising to enhance the delivery of public goods and services to common people not only by improving the process and management of government, but also by redefining the age-old traditional concepts. Community networking groups and local government authorities are well placed to campaign for greater inclusion for all members of the community in the information society. Possible areas to target include the provision of technology at low or no cost to groups through community technology centres or out of hours school access. There are many possibilities and local government must take a significant role in these activities (Young, 2000). Information society is based on the effective use and easy access of information and knowledge, while ICT for development (or ICTD) is not restricted to technology itself but focusing on manifold development and diverse manifestations for the people to improve their well-being. ICTD has deep roots in governance, is part of governance and has effects on governance patters and practices at both central and local level. By recognizing these facts, UNDP focuses on technologies to end poverty at WSIS Cyber Summit 2003, and emphasizes on ways that new technologies can help lift more than one billion people out of extreme poverty (UNDP, 2003). Apart from the four Asian IT giants (Korea, Rep., Hong Kong, China, Taiwan, China, and Japan), most of the Asian countries have fallen under the “low access” category of the Digital Access Index. This has also been referred in the WSIS Cyber Summit 2003, until now, limited infrastructure has often been regarded as the main barrier to bridging the digital divide (ITU, 2003). Among the countries with ICT spending as share of their GDP, Sweden, UK, The Netherlands, Denmark, and France (8.63, 7.97, 7.39, 7.19, and 6.57% respectively during 1992-2001) remain at the top (Daveri, 2002, p. 9), while countries like Bangladesh, Greece, Mexico, Niger, and many more remain at the bottom (EC, 2001; ITU, 2003b; Miller, 2001; Piatkowski, 2002). In a similar research it has been found that in terms of average share of ICT spending GDP, New Zealand, Sweden, Australia, USA, and UK (9.3, 8.4, 8.1, 8.1, and 7.8% respectively during 1992-1999) were among the highest (Pohjola, 2002, p. 7), though most of the countries in the Asian and African regions remain below the average of 5%. The disadvantaged communities in the countries staying below average in ICT spending seem to be lagging in forming appropriate information-based economy and eventually fall behind in achieving proper e-government system. The e-government system in those countries need to enhance access to and delivery of government services to benefit people, help strengthen government’s drive toward effective governance and increased transparency, and better management of the country’s social and economic resources for development. The key to e-government is the establishment of a long-term dynamic strategy to fulfill the citizen needs by transforming internal operations. E-government should result in the efficiency and swift delivery and services to citizens, business, government employees and agencies. For citizens and businesses, e-government seems the simplification of procedures and streamlining of different approval processes, while for government employees and agencies, it means the facilitation of cross-agency coordination and collaboration to ensure appropriate and timely decision-making. Thus, e-government demands transformation of government procedures and redefining the process of working with people and activities relating to people. The outcome would be a societal, organizational, and technological change for the government and to its people, with IT as an enabling factor. E-government should concentrate on more efficient delivery of public services, better management of financial, human and public resources and goods at all levels of government, in particular at local level, under conditions of sustainability, participation, interoperability, increased effectiveness and transparency (EU, 2002). ICT brings pertinent sides more closely by prioritizing partnerships between the state, business and civil society. A few East European countries have became economically liberal with the high level of foreign direct investment per capita and at the same time became ICT-advanced regional leaders in terms of economic reform. These countries also present the region’s most vivid examples of partnerships and collaboration. They have clearly manifested the importance of the public-private partnerships, transparent bottom-up strategies, involvement of all stakeholders, total governmental support, capturing economic opportunities, and enabling electronic mediated businesses, responding to the challenges of globalization.

The aim of this paper is to compare fiscal reforms of some of the transition economies in Balkans including The Republic of Macedonia. Since 1990’s former planned economies, which are in the process of economic transformation into market economy have carried out several reforms. During this economic transformation process both the effects and the results of these reforms vary according to the difference between the needs of structural change in each country. In this study, some of the selected transition economies in Balkans are analyzed: Some of the recent members of European Community in Balkans and The Republic of Macedonia are examined in comparison. Analysis of fiscal reforms of these transition economies are evaluated in several headings in reference to the macroeconomic statistics created by international organizations such as OECD, EC and IMF and policy suggestions are proposed accordingly. The government deficit, government debts and tax policy are the significant part of these reforms. Several strategies are implemented in developing support systems for competitive environment and private ownership. Economic shrinkage, current account deficit, low foreign capital and government deficit indicate economic weakness in these countries. The Czech Republic, Bulgaria, The Republic of Macedonia, Romania and Hungary face fiscal problems such as economic shrinkage, debt service and government deficit during the transition process. As being the candidate country for European Union accession; The Republic of Macedonia is approaching to the Maastricht Criteria and has better outcomes in public debt compared to the other countries given above.

This paper examines the organisational and discursive strategies of the Gülen movement in France and Germany and its differentiation in Turkish Islam in Europe, with the primary focus on the movement’s educational activities. The paper describes the characteristics of organisational activity among Turkish Muslims in Europe. Then it analyses two mainstream religious-communitarian movements and the contrasting settlement strategies of the “neo- communitarian” Gülen movement. Despite the large Turkish population in western Europe, the movement has been active there for only about ten years – relatively late compared to other Islamic organisations. Mainly, the associational organisation of Turkish Islam in Europe is based on two axes: the construction/ sponsoring of mosques and Qur’anic schools. By contrast, the Gülen movement’s members in Europe, insisting on ‘the great importance of secular education’, do not found or sponsor mosques and Qur’anic schools. Their principal focus is to address the problems of the immi- grant youth population in Europe, with reintegration of Turkish students into the educational system of the host societies as a first goal. On the one hand, as a neo-communitarian religious grouping, they strive for a larger share of the ‘market’ (i.e. more members from among the Turkish diaspora) by offering a fresh religious discourse and new organisational strategies, much as they have done in Turkey. On the other hand, they seek to gain legitimacy in the public sphere in Germany and France by building an educational network in these countries, just as they have done in Central Asia and the Balkans region. Accordingly, a reinvigorated and reorganised community is taking shape in western Europe. This paper examines the organizational and discursive strategies1 of the Gülen movement in France and Germany and it is differentiation in Turkish Islam in Europe. We seek to analyse particularly the educational activities of this movement which appeared in the Islamic scene in Diaspora of Europe for the last 10 years. We focus on the case of Gülen movement because it represents a prime example amongst Islamic movements which seek to reconcile-or ac- commodate- with the secular system in Turkey. In spite of the exclusionary policy of Turkish secular state towards the religious movements, this faith-based social movement achieved to accommodate to the new socio-political conditions of Turkey. Today, for many searchers, Gülen movement brings Islam back to the public sphere by cross-fertilizing Islamic idioms with global discourses on human rights, democracy, and the market economy.2 Indeed, the activities of Gülen movement in the secular context of France and Germany represent an interesting sociological object. Firstly, we will describe the characteristics of organizational ability of Anatolian Islam in Europe. Then we will analyse the mainstream religious-com- munitarian movements (The National Perspective movement and Suleymanci community) and the settlement strategies of the “neo-communitarian”3 Gülen movement in the Turkish Muslim Diaspora. Based on semi-directive interviews with the directors of the learning centres in Germany and France and a 6 month participative observation of Gülen-inspired- activities in Strasbourg; we will try to answer the following questions: How the movement appropriates the “religious” manner and defines it in a secular context regarding to the host/ global society? How the message of Gülen is perceived among his followers and how does it have effect on acts of the Turkish Muslim community? How the movement realises the transmission of communitarian and `religious’ values and-especially-how they compete with other Islamic associations? In order to answer these questions, we will make an analysis which is based on two axes: Firstly, how the movement position within the Turkish-Islamic associational organisation? Secondly, we will try to describe the contact zones between the followers of Gülen and the global society.

The COVID-19 pandemic has worsened the extreme inequality in Southern African Development Community (SADC) countries, and pushed millions into poverty. The economic crisis continues due to the obscene global vaccine inequality. As of end March 2022, a dismal 14% of SADC citizens had been fully vaccinated against COVID-19, compared with 65.5% in the United States and 73% in the European Union. In 2021, with infections rising in SADC, the critical health, social protection and economic programmes put in place by most governments in 2020 were rolled back and replaced with austerity, in the context of growing debt burdens and lack of external support for country budgets. Such austerity has been built into IMF programmes in the region. Recovering from the pandemic, however, offers SADC governments a once-in-a-generation opportunity to do what their citizens want: increase taxes on the wealthy and large corporations, boost public spending (especially on healthcare, education and social protection), and increase workers’ rights as well as tackling joblessness and precarious work. With external support, including through debt relief and aid, they could reduce inequality drastically and eliminate extreme poverty by 2030.

The COVID-19 pandemic has worsened the extreme inequality in Southern African Development Community (SADC) countries, and pushed millions into poverty. The economic crisis continues due to the obscene global vaccine inequality. As of end March 2022, a dismal 14% of SADC citizens had been fully vaccinated against COVID-19, compared with 65.5% in the United States and 73% in the European Union. In 2021, with infections rising in SADC, the critical health, social protection and economic programmes put in place by most governments in 2020 were rolled back and replaced with austerity, in the context of growing debt burdens and lack of external support for country budgets. Such austerity has been built into IMF programmes in the region. Recovering from the pandemic, however, offers SADC governments a once-in-a-generation opportunity to do what their citizens want: increase taxes on the wealthy and large corporations, boost public spending (especially on healthcare, education and social protection), and increase workers’ rights as well as tackling joblessness and precarious work. With external support, including through debt relief and aid, they could reduce inequality drastically and eliminate extreme poverty by 2030.

In the second quarter, annual inflation (9.67%), the technical staff’s projections and its expectations continued to increase, remaining above the target. International cost shocks, accentuated by Russia's invasion of Ukraine, have been more persistent than projected, thus contributing to higher inflation. The effects of indexation, higher than estimated excess demand, a tighter labor market, inflation expectations that continue to rise and currently exceed 3%, and the exchange rate pressures add to those described above. High core inflation measures as well as in the producer price index (PPI) across all baskets confirm a significant spread in price increases. Compared to estimates presented in April, the new forecast trajectory for headline and core inflation increased. This was partly the result of greater exchange rate pressure on prices, and a larger output gap, which is expected to remain positive for the remainder of 2022 and which is estimated to close towards yearend 2023. In addition, these trends take into account higher inflation rate indexation, more persistent above-target inflation expectations, a quickening of domestic fuel price increases due to the correction of lags versus the parity price and higher international oil price forecasts. The forecast supposes a good domestic supply of perishable foods, although it also considers that international prices of processed foods will remain high. In terms of the goods sub-basket, the end of the national health emergency implies a reversal of the value-added tax (VAT) refund applied to health and personal hygiene products, resulting in increases in the prices of these goods. Alternatively, the monetary policy adjustment process and the moderation of external shocks would help inflation and its expectations to begin to decrease over time and resume their alignment with the target. Thus, the new projection suggests that inflation could remain high for the second half of 2022, closing at 9.7%. However, it would begin to fall during 2023, closing the year at 5.7%. These forecasts are subject to significant uncertainty, especially regarding the future behavior of external cost shocks, the degree of indexation of nominal contracts and decisions made regarding the domestic price of fuels. Economic activity continues to outperform expectations, and the technical staff’s growth projections for 2022 have been revised upwards from 5% to 6.9%. The new forecasts suggest higher output levels that would continue to exceed the economy’s productive capacity for the remainder of 2022. Economic growth during the first quarter was above that estimated in April, while economic activity indicators for the second quarter suggest that the GDP could be expected to remain high, potentially above that of the first quarter. Domestic demand is expected to maintain a positive dynamic, in particular, due to the household consumption quarterly growth, as suggested by vehicle registrations, retail sales, credit card purchases and consumer loan disbursement figures. A slowdown in the machinery and equipment imports from the levels observed in March contrasts with the positive performance of sales and housing construction licenses, which indicates an investment level similar to that registered for the first three months of the year. International trade data suggests the trade deficit would be reduced as a consequence of import levels that would be lesser than those observed in the first quarter, and stable export levels. For the remainder of the year and 2023, a deceleration in consumption is expected from the high levels seen during the first half of the year, partially as a result of lower repressed demand, tighter domestic financial conditions and household available income deterioration due to increased inflation. Investment is expected to continue its slow recovery while remaining below pre-pandemic levels. The trade deficit is expected to tighten due to projected lower domestic demand dynamics, and high prices of oil and other basic goods exported by the country. Given the above, economic growth in the second quarter of 2022 would be 11.5%, and for 2022 and 2023 an annual growth of 6.9% and 1.1% is expected, respectively. Currently, and for the remainder of 2022, the output gap would be positive and greater than that estimated in April, and prices would be affected by demand pressures. These projections continue to be affected by significant uncertainty associated with global political tensions, the expected adjustment of monetary policy in developed countries, external demand behavior, changes in country risk outlook, and the future developments in domestic fiscal policy, among others. The high inflation levels and respective expectations, which exceed the target of the world's main central banks, largely explain the observed and anticipated increase in their monetary policy interest rates. This environment has tempered the growth forecast for external demand. Disruptions in value chains, rising international food and energy prices, and expansionary monetary and fiscal policies have contributed to the rise in inflation and above-target expectations seen by several of Colombia’s main trading partners. These cost and price shocks, heightened by the effects of Russia's invasion of Ukraine, have been more prevalent than expected and have taken place within a set of output and employment recovery, variables that in some countries currently equal or exceed their projected long-term levels. In response, the U.S. Federal Reserve accelerated the pace of the benchmark interest rate increase and rapidly reduced liquidity levels in the money market. Financial market actors expect this behavior to continue and, consequently, significantly increase their expectations of the average path of the Fed's benchmark interest rate. In this setting, the U.S. dollar appreciated versus the peso in the second quarter and emerging market risk measures increased, a behavior that intensified for Colombia. Given the aforementioned, for the remainder of 2022 and 2023, the Bank's technical staff increased the forecast trajectory for the Fed's interest rate and reduced the country's external demand growth forecast. The projected oil price was revised upward over the forecast horizon, specifically due to greater supply restrictions and the interruption of hydrocarbon trade between the European Union and Russia. Global geopolitical tensions, a tightening of monetary policy in developed economies, the increase in risk perception for emerging markets and the macroeconomic imbalances in the country explain the increase in the projected trajectory of the risk premium, its trend level and the neutral real interest rate1. Uncertainty about external forecasts and their consequent impact on the country's macroeconomic scenario remains high, given the unpredictable evolution of the conflict between Russia and Ukraine, geopolitical tensions, the degree of the global economic slowdown and the effect the response to recent outbreaks of the pandemic in some Asian countries may have on the world economy. This macroeconomic scenario that includes high inflation, inflation forecasts, and expectations above 3% and a positive output gap suggests the need for a contractionary monetary policy that mitigates the risk of the persistent unanchoring of inflation expectations. In contrast to the forecasts of the April report, the increase in the risk premium trend implies a higher neutral real interest rate and a greater prevailing monetary stimulus than previously estimated. For its part, domestic demand has been more dynamic, with a higher observed and expected output level that exceeds the economy’s productive capacity. The surprising accelerations in the headline and core inflation reflect stronger and more persistent external shocks, which, in combination with the strength of aggregate demand, indexation, higher inflation expectations and exchange rate pressures, explain the upward projected inflation trajectory at levels that exceed the target over the next two years. This is corroborated by the inflation expectations of economic analysts and those derived from the public debt market, which continued to climb and currently exceed 3%. All of the above increase the risk of unanchoring inflation expectations and could generate widespread indexation processes that may push inflation away from the target for longer. This new macroeconomic scenario suggests that the interest rate adjustment should continue towards a contractionary monetary policy landscape. 1.2. Monetary policy decision Banco de la República’s Board of Directors (BDBR), at its meetings in June and July 2022, decided to continue adjusting its monetary policy. At its June meeting, the BDBR decided to increase the monetary policy rate by 150 basis points (b.p.) and its July meeting by majority vote, on a 150 b.p. increase thereof at its July meeting. Consequently, the monetary policy interest rate currently stands at 9.0% . 1 The neutral real interest rate refers to the real interest rate level that is neither stimulative nor contractionary for aggregate demand and, therefore, does not generate pressures that lead to the close of the output gap. In a small, open economy like Colombia, this rate depends on the external neutral real interest rate, medium-term components of the country risk premium, and expected depreciation. Box 1: A Weekly Indicator of Economic Activity for Colombia Juan Pablo Cote Carlos Daniel Rojas Nicol Rodriguez Box 2: Common Inflationary Trends in Colombia Carlos D. Rojas-Martínez Nicolás Martínez-Cortés Franky Juliano Galeano-Ramírez Box 3: Shock Decomposition of 2021 Forecast Errors Nicolás Moreno Arias

Banco de la República provides a comprehensive overview of Colombia’s finan¬cial infrastructure in its Payment Systems Report, which is an important product of the work it does to oversee that infrastructure. The figures published in this edition of the report are for the year 2020, a pandemic period in which the con¬tainment measures designed and adopted to alleviate the strain on the health system led to a sharp reduction in economic activity and consumption in Colom¬bia, as was the case in most countries. At the start of the pandemic, the Board of Directors of Banco de la República adopted decisions that were necessary to supply the market with ample liquid¬ity in pesos and US dollars to guarantee market stability, protect the payment system and preserve the supply of credit. The pronounced growth in mone¬tary aggregates reflected an increased preference for liquidity, which Banco de la República addressed at the right time. These decisions were implemented through operations that were cleared and settled via the financial infrastructure. The second section of this report, following the introduction, offers an analysis of how the various financial infrastructures in Colombia have evolved and per¬formed. One of the highlights is the large-value payment system (CUD), which registered more momentum in 2020 than during the previous year, mainly be¬cause of an increase in average daily remunerated deposits made with Banco de la República by the General Directorate of Public Credit and the National Treasury (DGCPTN), as well as more activity in the sell/buy-back market with sovereign debt. Consequently, with more activity in the CUD, the Central Securi¬ties Depository (DCV) experienced an added impetus sparked by an increase in the money market for bonds and securities placed on the primary market by the national government. The value of operations cleared and settled through the Colombian Central Counterparty (CRCC) continues to grow, propelled largely by peso/dollar non-deliverable forward (NDF) contracts. With respect to the CRCC, it is important to note this clearing house has been in charge of managing risks and clearing and settling operations in the peso/dollar spot market since the end of last year, following its merger with the Foreign Exchange Clearing House of Colombia (CCDC). Since the final quarter of 2020, the CRCC has also been re¬sponsible for clearing and settlement in the equities market, which was former¬ly done by the Colombian Stock Exchange (BVC). The third section of this report provides an all-inclusive view of payments in the market for goods and services; namely, transactions carried out by members of the public and non-financial institutions. During the pandemic, inter- and intra-bank electronic funds transfers, which originate mostly with companies, increased in both the number and value of transactions with respect to 2019. However, debit and credit card payments, which are made largely by private citizens, declined compared to 2019. The incidence of payment by check contin¬ue to drop, exhibiting quite a pronounced downward trend during the past last year. To supplement to the information on electronic funds transfers, section three includes a segment (Box 4) characterizing the population with savings and checking accounts, based on data from a survey by Banco de la República con-cerning the perception of the use of payment instruments in 2019. There also is segment (Box 2) on the growth in transactions with a mobile wallet provided by a company specialized in electronic deposits and payments (Sedpe). It shows the number of users and the value of their transactions have increased since the wallet was introduced in late 2017, particularly during the pandemic. In addition, there is a diagnosis of the effects of the pandemic on the payment patterns of the population, based on data related to the use of cash in circu¬lation, payments with electronic instruments, and consumption and consumer confidence. The conclusion is that the collapse in the consumer confidence in¬dex and the drop in private consumption led to changes in the public’s pay¬ment patterns. Credit and debit card purchases were down, while payments for goods and services through electronic funds transfers increased. These findings, coupled with the considerable increase in cash in circulation, might indicate a possible precautionary cash hoarding by individuals and more use of cash as a payment instrument. There is also a segment (in Focus 3) on the major changes introduced in regulations on the retail-value payment system in Colombia, as provided for in Decree 1692 of December 2020. The fourth section of this report refers to the important innovations and tech¬nological changes that have occurred in the retail-value payment system. Four themes are highlighted in this respect. The first is a key point in building the financial infrastructure for instant payments. It involves of the design and im¬plementation of overlay schemes, a technological development that allows the various participants in the payment chain to communicate openly. The result is a high degree of interoperability among the different payment service providers. The second topic explores developments in the international debate on central bank digital currency (CBDC). The purpose is to understand how it could impact the retail-value payment system and the use of cash if it were to be issued. The third topic is related to new forms of payment initiation, such as QR codes, bio¬metrics or near field communication (NFC) technology. These seemingly small changes can have a major impact on the user’s experience with the retail-value payment system. The fourth theme is the growth in payments via mobile tele¬phone and the internet. The report ends in section five with a review of two papers on applied research done at Banco de la República in 2020. The first analyzes the extent of the CRCC’s capital, acknowledging the relevant role this infrastructure has acquired in pro¬viding clearing and settlement services for various financial markets in Colom¬bia. The capital requirements defined for central counterparties in some jurisdic¬tions are explored, and the risks to be hedged are identified from the standpoint of the service these type of institutions offer to the market and those associated with their corporate activity. The CRCC’s capital levels are analyzed in light of what has been observed in the European Union’s regulations, and the conclusion is that the CRCC has a scheme of security rings very similar to those applied internationally and the extent of its capital exceeds what is stipulated in Colombian regulations, being sufficient to hedge other risks. The second study presents an algorithm used to identify and quantify the liquidity sources that CUD’s participants use under normal conditions to meet their daily obligations in the local financial market. This algorithm can be used as a tool to monitor intraday liquidity. Leonardo Villar Gómez Governor