Swiss Challenge System

Why is the Swiss Challenge System (SCS) finding acceptance despite the drawbacks?

Smitha Namboodri, Tiruvananthapuram
I think it is primarily because developing nations especially want to be on the fast track and quickly adopt all those infrastructural facilities that are enjoyed by the developed nations. Obviously, it has to encourage private initiative if this were to happen. The major weakness of the SCS is it encourages private initiative all right but allows the private party taking the initiative too much latitude so much so that the project is likely to be expensive. The better course would be to reward the private party by paying him handsomely for his idea without allowing him any price preference as under the bonus system or the first right of refusal as under SCS.
Only if there is a level-playing field for everyone participating in a bid, can one expect true price discovery. The biggest disadvantage of SCS is that the unsolicited bidder may have an ace up his sleeve which is likely to keep him in good stead forever. His challengers are condemned to lose out on this count.
S. MURLIDHARAN