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Here is a model Indian States can implement to ensure smooth flow of medical supplies to health facilities

Shanker Lal's picture
Photo: John Isaac / World Bank

Though the Indian government has steadily increased funding for its health sector, per capita allocation is still low; reform is thus critical to effectively utilize the available budget.

​The underlying question is: Given a set of resources, how do you procure goods in a way that achieves value for money and maximum efficiency?

In India, procurement of health sector goods has been a major concern for the government. Drugs and medical supplies are not procured and distributed in time, and this interruption in the delivery of services in health facilities affect the general population’s health outcomes.

Financing Needs Cannot Be Met Without Private Sector's Help

Nazaneen Ismail Ali's picture
Photo: Dana Smillie / World Bank

To maintain current growth rates and meet demands for infrastructure, developing countries will require an additional investment of at least an estimated US$1 trillion a year through 2020. In the Mashreq countries, the required infrastructure investment for electricity alone is estimated at US$ 130 billion by 2020, and an additional US$108 billion by 2030.
These gigantic financing needs will continue to place a huge burden on government budgets. Simply put, they cannot be addressed without private sector participation. Public-private partnerships (PPPs) can help to close this growing funding deficit and to meet the immense demands for new or improved infrastructure and service delivery in sectors like water, transport, and energy (among others). In countries with diverse and numerous needs,PPPs can fill gaps in implementation capacity as well as the scarcity of public funds.

Three Reasons Procurement is Essential for Development

Philipp Krause's picture

Public procurement is not among the most popular topics in development circles. However, consider just these three ways in which procurement is probably one of the most indispensable elements that make up a truly capable state:

First, without effective procurement, hospitals wait for drugs, teachers for textbooks, and cities for roads. Whenever a news item surfaces about drugs shortages in hospitals, schools without textbooks or failing road networks, the reader may be looking at a procurement problem. Without efficient procurement, money gets wasted on a very large scale. Many developing countries channel significant proportions of their budgets through the procurement system – even marginal savings can add up very fast. Third, public procurement is a part of the government that citizens see every day. Lack of transparency and corruption in procurement directly affects citizens, and the losses to corruption are estimated in the billions of dollars every year. Corruption in procurement is a big problem that affects rich countries as well.   

Value for Money in Public Procurement: Beyond Rules to Measurement

Martin Raiser's picture
Strong public procurement systems are central to well-functioning public financial management institutions and good public sector governance. But how can governments ensure public procurement is efficient? Traditionally, the recommended approach has emphasized the importance of adequate rules that encourage competitive bidding. This involves transparent tender documents and processes with as little discrimination as possible, an independent procurement agency that would set standards and monitor their enforcement, and an independent appeals body to hear complaints of participating bidders.

Fighting corruption in Vietnam: the question is how, not why

Ngan Hong Nguyen's picture

It’s difficult to do a background check of a company based in a foreign country with operations overseas.

It’s difficult to check to see whether a document is falsified or not.

It’s difficult to …

I heard a lot of that from the audience of the workshop on World Bank’s Anti-Corruption Framework & Common Integrity Risks in World Bank-Funded Projects in Hanoi recently. Majority of the participants were project managers and procurement staff from Project Management Units managing World Bank-funded projects.

Presentations from the Bank’s Integrity Unit show that corruption increases costs, reduces quality, delays impacts on poverty, creates public disgrace and even generates social instability.  For a person who often has to look at results of development projects like me, corruption eats into the meager meal of the ethnic minority people in the northern mountainous areas of Vietnam, takes education away from girls in learning age, and lower the quality of hospitals for old people in Mekong river delta.

Planning for an edtech RFP: Technical vs. functional specs

Michael Trucano's picture

should she be more interested in ensuring that he meets her technical or functional specifications if this partnership is to work?ICT-related procurements in the education sector, especially large scale ones, are not easy.  A recent World Bank Internal Evaluation Group report noted that "ICT procurement has been highlighted as a major implementation constraint in several country and regional portfolio reviews and is a critical dimension of design." Rapid changes in technology mean that many ministries of education have a hard time keeping up with what's current in the market, let alone what might be coming next.

Even in places where anti-corruption measures are well considered and implemented, government auditors and external watchdog groups may be challenged to identify dodgy practices in some ICT-related areas.  (Have you ever read the fine print on large scale bandwidth contracts for schools? Such things are often not for the feint of heart.) It is not unknown to hear whisperings about vendors -- or consultants close to them -- providing 'assistance' of various sorts in writing a request for proposals (or certain technical specs that appear in such RFPS), and of course vendors often hope that their showcase pilot projects may inspire ministries of education to think in certain ways about what is possible, and even desirable. For many ministries of education, the line between 'influence' and 'undue influence' in such cases can be very clear in some circumstances, but rather hazy in others.  

As part of a very interesting Q&A period after a presentation at the World Bank a few years ago, mention was made about some of the challenges faced in a state in southern India which was exploring whether so-called thin client solutions might be worth considering in its schools. Essentially, the issue was this: Traditional practice when procuring computers for schools had focused on ensuring that each computer met a defined set of minimum technical specifications. In an alternative, 'thin client' set-up, it was possible to use workstations that had less robust specifications, provided they were connected to a powerful server whose processing power substitutes for that of the client computer. To oversimplify:

[-] 'traditional' approach: lots of pretty powerful computers
[-] 'alternative' approach: lots of relatively underpowered computers, connected to one very powerful computer

The point here is not to imply that one type of arrangement is on its face better or worse. Rather, it is to highlight that, if you write an RFP in a certain way -- in our example here, requiring that *every* computer meet a certain relatively high technical specification (processing speed, hard drive size, etc.) -- you may exclude proposals that feature non-traditional or 'alternative' or new approaches.

One way around this is to put more emphasis on functional specifications, rather than technical specifications, in certain components of your RFP. Not sure what this means in practice? When discussing such issues with ministries of education, I often point to an RFP at the heart of a procurement process in the U.S. state of Maine as a way to highlight an approach to procurement that is, at least in terms of most of the places where the World Bank works helping to advise education leaders, rather rare. While I am certainly no procurement expert -- thankfully we have plenty of very good ones at the World Bank to whom I can refer people -- I offer the comments below based on many discussions with ministries of education about their  challenges in this regard, in case doing so might be of any interest.

Textbooks of the future: Will you be buying a product ... or a service?

Michael Trucano's picture

tell me again why we didn't buy the digital version?The World Bank is currently working with a few countries that are planning for the procurement of lots of digital learning materials.  In some cases, these are billed as 'e-textbooks', replacing in part existing paper-based materials; in other cases, these are meant to complement existing curricular materials. In pretty much all cases, this is happening as a result of past, on-going or upcoming large scale procurements of lots of ICT equipment.  Once you have your schools connected and lots of devices (PCs, laptops, tablets) in the hands of teachers and students, it can be rather useful to have educational content that runs on whatever gadgets you have introduced into to help aid and support teaching and learning. In this regard, we have been pleased to note fewer countries pursuing one of the  prominent worst practices in ICT use in education that we identified a few years ago: "Think about educational content only after you have rolled out your hardware."

At least initially, many education authorities in middle- and low-income countries seem to approach the large-scale procurement of digital learning materials in much the same way that they viewed purchases of textbooks in the past.  On its face, this is quite natural: If you have tried and tested systems in place to buy textbooks, why not use them to buy 'e-textbooks' as well? (We'll leave aside for a moment questions about whether such systems to procure textbooks actually worked well -- that's another discussion!) As with many things that have to do with technology in some way, things become a little more complicated the more experience you have wrestling with them.

Morocco: When Governance, Transparency, Integrity, Accountability, & Public Procurement Entered the Constitution

Laurence Folliot Lalliot's picture

This post originally appeared on Voices & Views: Middle East & North Africa

Although many events from the Middle East and North Africa region have enjoyed large press coverage and headlines, one has remained, to date, a rather well-kept secret: the inclusion of governance and a dedicated provision on Public Procurement in the new Moroccan Constitution, adopted by referendum on July 1, 2011. In doing so, Morocco has joined the very small list of countries (i.e., South Africa and the Philippines) to grant a constitutional status to this rather technical field, the impact of which will be progressively felt in the world (even outside the small world of procurement lawyers), as it affects how government money is converted into goods and works like roads, schools, vaccines, etc.

Improving Procurement in India's Technical Education Project through the Web

Kalesh Kumar's picture

In 2006-07, a procurement review carried out on the Technical Education Quality Improvement Project (TEQIP) in India shocked and surprised project authorities as well as the World Bank. Even in the third year of implementation, participating Engineering institutes were unable to follow the agreed processes and procedures. That situation eventually lead to the development of web based PMSS (Procurement management Support System) currently being used in TEQIP Phase 2 program.

The procurement Review Consultants reported an astonishing 56% variation and resulting non compliance of procedures in the sample of reviewed contracts. A series of further assessments and introspection brought out the main issues that plagued the procurement system. These were:

(i) Geography: challenges of ensuring consistency and adherence to agreed procedures in projects that covered a wide area between hundreds of institutions as seen institutions in different states following their respective procedures , using inappropriate methods of selection, etc. 

How do Projects Implemented by Beneficiary Communities Save Time and Costs?

Kalesh Kumar's picture

In 2010, under the nationwide Elementary Education Program called Sarva Siksha Abhiyan (SSA), an education committee in Bhagwan Garhi in the Aligarh district of Uttar Pradesh, India completed the construction of an eight classroom school for the cost of $80 per square meter, whereas the cost incurred for a contractor lead construction of a comparable school structure in the nearby district of Lucknow was $124 per square meter.

According to review reports, the Community Beneficiary Committee in Bhagwan Garhi had completed the work drawing labor from the community and buying the required amount of materials at a lower rate with technical guidance from the district level engineer.

How does this happen?