On June 7, 2024, employees of SO "Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine" took part in the hearings of the Committee of the Verkhovna Rada of Ukraine on Economic Development on "Post-legislative control in the field of compliance with the requirements for the presence of a local component (localization) in public procurement." At the hearings, the participants presented the results of a survey carried out as part of post-legislative control of the effectiveness of implementation of the Law of Ukraine "On Amending the Law of Ukraine "On Public Procurement" regarding the creation of prerequisites for the sustainable development and modernization of domestic industry" and the results of regular monitoring of purchases with localization through the Prozoro system.

Among the important topics discussed during the hearings, a lively discussion was sparked by the issue of expanding the list of goods subject to the requirement of localization.

During his speech, the head of the Department of Sectoral Forecasts and Market Conjuncture, Doctor of Economics Vitalii VENGER reported that the researchers of SO "Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine" on the initiative of its director, Academician Valeriy HEYETS, as part of the activities of the Scientific Discussion Platform under the Ministry of Economy of Ukraine, and at the request of this ministry, prepared and presented a series of scientific and analytical materials on import substitution in public procurement at the expense of localization as one of the TOP-17 key research projects on the recovery of Ukraine’s economy. Senior researcher, Doctor of Economics Oksana KUSHNIRENKO supported the expansion of the list of goods subject to the requirement of localization, in particular with cable and wire products, justifying that the increase in public purchases of these products from domestic manufacturers will positively affect such key macroeconomic indicators as the country's GDP, employment, taxes, budget etc.

Along with this, in her speech she pointed out as important for the efficiency of managerial decision-making in public procurement the proposals of the Committee of the Verkhovna Rada of Ukraine on Economic Development regarding the involvement of scientific and analytical centers in the development of the following issues:

– methods of analysis of the penetration of imports into public procurement;

– assessment of the impact of public procurement of goods with a local component (localization) on filling the state budget; and

- generalization of international experience regarding the definition of criteria for support of domestic producers.

The constructive dialogue of representatives of the government, business and analytical centers within the framework of the event showed the importance of consolidating the interests of key stakeholders in order to achieve a balance between the developmental needs of producers and customers and stability of the national economy.

Based on the results of the hearings, it is expected to develop recommendations for improving the country’s legislation acts to comply with the requirements for the presence of a local component (localization) in public procurement.