India - which spends an estimated 20% of GDP on public procurement - has been struggling with the challenges of decentralized procurement of commonly used items for quite a long time.
Women are agents of change in Bihar, India. Photo: World Bank
Empowering women in a society is essentially a process of uplifting the economic, social and political status of women and the underprivileged. It involves building a society wherein women can breathe without the fear of oppression, exploitation, apprehension, discrimination, and a general feeling of ill-treatment that symbolized a woman in a traditional male-dominated society like the one in India.
With the implementation of gender quotas since India’s 73rd and 74th Constitutional Amendment Acts, the percentage of women in political activities at the local level has risen from 4-5% to about 35-40%.
For the first time, rural women began to participate in local governance to improve their status and acquire a decisive say in matters crucial to their livelihoods. This , contributing to improving the well-being of rural women.
Control over local government resources and the collective power of women have helped women discover their own self-respect and confidence. In the recent discourse on women empowerment in the 62nd session of the Commission on Status of Women,
In the fiscal transparency arena, people often hear two conflicting claims. First, governments complain that few people take advantage of fiscal information that they make publicly available. Many countries - including fragile and low-income countries such as Togo and Haiti – have been opening up their budgets to public scrutiny by making fiscal data available, often through web portals.
Increasing the supply of fiscal information, however, often does not translate to the adequate demand and usage required to bring some of the intended benefits of transparency such as increased citizen engagement, and accountability. Providing a comprehensive budget dataset to the public does not guarantee that citizens, Civil Society Organizations (CSOs) and the media will start digging through the numbers.
As I have blogged earlier, the World Bank is supporting Procurement Observatories in India. Procurement Observatories are civil society organizations, whose goal is to collect, analyze and present public procurement policies and data to the public in a more understandable way. These initiatives, inspired by similar approaches in Nigeria, allow for greater transparency of procurement practices.
While the aim of these observatories is to become self-sustaining and independent from World Bank support, recent progress from three such observatories in India show that .
India is the fastest-growing major economy in the world with significant Government investments in infrastructure. According to estimates by WTO and OECD, as quoted in a report from the United Nations Office on Drugs and Crime, India: Probity in Public Procurement, the estimated public procurement in India is between 20 and 30 percent of GDP.
This translates to Indian government agencies issuing contracts worth an estimated US$ 419 billion to US$ 628 billion each year for various aspects of infrastructure projects. Ideally, in contractual agreements no disputes would arise and both sides would benefit from the outcome. However, unexpected events occur and many contracts end in dispute. Contractual legal disputes devoid project benefits to the public as time and resources are spent in expensive arbitration and litigation. As a result, India’s development goals are impacted.
Editor's note: This blog post is part of a series for the 'Bureaucracy Lab', a World Bank initiative to better understand the world's public officials.
“By introducing an automated customer management system we took a noose and put it around our own necks. We are now accountable!”
This reflection from a manager in the Nairobi Public Water and Sewerage utility succinctly captures the impact of MajiVoice, a digital system that logs customer complaints, enables managers to assign the issue to a specific worker, track its resolution, and report back to the customer via an SMS. As a result, complaint resolution rates have doubled, and the time taken to resolve complaints has dropped by 90 percent.
MajiVoice shows that digital technologies can dramatically improve public sector capacity and accountability in otherwise weak governance environments. But is this example replicable? Can the increasingly cheap and ubiquitous digital technologies—there are now 4.7 billion mobile phone users in the world—move the needle on governance and make bureaucrats more accountable?
How large is the share of public procurement to GDP in middle-income and low-income countries and how it is evolving? If sizable, can public procurement be used as a policy tool to make markets more competitive, and thus improve the quality of government services? Can it be used to induce innovation in firms? Can it also be a significant way to reduce corruption?
A significant percentage of government spending in India goes towards the creation of new infrastructure like the construction of roads, ports, railways and power plants. Construction contracts, however, often have a reputation for disputes and conflicts between contractors and governments. Such disputes ultimately delay implementation of the contracts and increase total costs, adversely impacting development outcomes of the projects.
Many countries have found that Dispute Boards offer an effective mechanism for resolving these issues in a timely and cost-effective manner. These boards, composed of one to three members, are set up upon commencement of a contract and help the involved parties avoid or overcome disagreements or disputes that arise during the contract’s implementation. The boards are less legalistic, less adversarial, less time consuming and less costly than options for resolving disputes within the legal system, including arbitration and litigation.
A 2004 study (PDF) shows that with an almost 99% success rate. The savings in using these boards are enormous: another study indicates that in almost 10% of projects, between 8% and 10% of the total project cost was legal cost.
India is the world’s largest producer as well as consumer of milk and milk products. India nevertheless faces a shortage of milk and milk products due to increasing demand from the fast growing middle class in the country.
The National Dairy Plan Phase I (NDP-I), a Central Sector Scheme of the Government of India, which is supported by National Dairy Support Project (NDSP), aim to increase milk productivity and market access for milk producers, which are both necessary to meet the growing demand for milk. NDP-I is being implemented with a total investment of about US$350 Million, out of which the Bank has extended a Credit of US$219 Million through the NDSP.
The National Dairy Development Board (NDDB) is the main implementing agency for the NDP-I. At the decentralized level, NDP-I is being implemented by about 150 end‐implementing agencies (EIAs) scattered over the country.
The Project involves some innovative procurement practices and improvements in upstream milk supply chain, which are described below:
In large, developing countries the government spends much of its budget on social safety net programs and building infrastructure, which involves procuring goods and services. But the ways in which these goods and services are purchased – the procurement process – can sometimes be inefficient and opaque to citizens. The procurement data is not easy to find or easy to understand; the policies are not always clear. In short,
In India, with help from the World Bank, there’s a promising initiative that is trying to address this problem, which is fundamentally one of transparency and accountability in government. But it is entering a critical new phase, in which it will need to become more self-sufficient and wean itself off of the initial World Bank seed funding.