Why digitize public procurement?
Many countries have an opportunity to digitally transform public procurement systems to achieve enhanced efficiency, accountability, transparency, and participation of small and medium enterprises (SMEs). Digitally transforming public procurement would also accelerate national development objectives, such as enhancing public service delivery, developing human capital and the private sector, and gender empowerment.
Middle East and North Africa
Why digitize public procurement?
We also want to thank you for reading, contributing and engaging on what it will take to help governments build capable, efficient, open, inclusive and accountable institutions.
The idea that economic growth needs good governance and good governance needs economic growth takes us to a perennial chicken-and-egg debate: Which comes first in development—good governance OR economic growth? For decades, positions have been sharply divided between those who advocate “fix governance first” and others who say “stimulate growth first.”
We know corruption in developing countries affects poor people the most. It also impacts firms in many ways.
Bill Lyons / World Bank
A new World Bank report addressing the widespread dissatisfaction of citizens with the delivery of essential public services and calling for accountability in public service delivery in the Middle East and North Africa (MENA) region was released a few weeks ago.
The statistics in Trust, Voice, and Incentives: Learning from Local Success Stories in Service Delivery in the Middle East and North Africa are grim, as nearly three quarters of MENA students are scoring “low” or “below low” in international student performance tests and one third of the public health clinics in MENA countries lack essential medicines and staff.
The good news, however, is that the report also sheds light on local success stories in health and education where, to citizens. The examples from Jordan, Morocco, and the Palestinian Territories highlight the power of collaboration and mutual trust between citizens and public servants to produce better results.
The Middle East and North Africa (MENA) is a rising middle-income region, and its citizens rightly expect quality public services. Yet too often they experience disappointment: students attending local schools are insufficiently prepared for the 21st century economy, and those needing health care too often find public clinics with no doctors or medicines.
Few in positions of authority are held accountable for such shortcomings. This situation both undermines the potential for improvement and heightens people’s unhappiness with the delivery system.
At times, I ask my friends in Nepal, why they would not launch a business, especially when they have funds. A common obstacle for everyone is that they say you have to bribe government officials to even open a business.
Turns out, this isn’t unique to Nepal. According to Drivers of Corruption, a report recently published by the World Bank,
. These charts are based on surveys of more than 13,000 firms in 135 countries, by World Bank Enterprise Surveys.
Check out these charts and tell us if you are surprised.
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.
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.
In response to such situations, development specialists typically call for sector-wide reforms. And the design of such reforms draws on sector policy analysis and on the assessment of service delivery arrangements and capacity. Increasingly, since the 2004 World Development Report, sector reforms also seek to make teachers, health professionals and other service providers accountable to citizens and communities.