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.
Many Bank-financed projects, especially those implementing large and complex contracts continually face high risk of implementation delays, and procurement is the most frequently used scapegoat.
What has gone wrong in those cases?
At the onset, borrowers are requested to prepare a detailed procurement plan for the first 18 months of project implementation, which is carefully reviewed and approved by the Bank before loan negotiations and the projects are then declared "good to go."
But the reality is almost never that rosy.
Procurement is an essential aspect of World Bank operations and international development projects worldwide. The World Bank’s policy on procurement encourages the use of country systems in procurement implementation process while ensuring the consistency with the Bank’s regulations .
Making procurement information publicly available promotes openness and transparency and creates a level playing field for bidders. This, in turn, fosters competition and potentially decreases corruption risks.
With this in mind, World Bank teams in East Asia and the Pacific successfully collaborated with government procurement agencies to increase and improve the publication of procurement information and to pilot e-procurement portals for Bank-funded operations.
The following story shares our experiences and successes in both China and Vietnam.
I recently visited one of Bioversity International’s project sites in Begnas, where I met farming couple, Surya and Saraswati Adhikari. They proudly showed me around their biodiverse farm, pointing out some of the 150 plant species they grow and explaining that each one has a specific use. They showed me the vegetables, rice, gourds and legumes they grow to eat and sell; the trees that provide fruits, fodder and fuel, and the many herbs for medicinal and cultural purposes.
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:
Amazon is promising to deliver goods with drones. Seeing these prospective innovations in airborne delivery, we’ll be forgiven for thinking that bad roads will increasingly be secondary concerns.
But the reality is that “last mile” road access will continue to be a major and costly development challenge for years to come. “Last mile" access refers to road to final destinations, whether communities, crops, markets, schools or clinics. These are typically provincial, city-municipal and barangay (village) roads in the Philippines.
Often the responsibility of local governments, these roads determine the ease and cost by which people and goods can get to final destinations. Communities across the globe face poor road access, depriving them of economic and social opportunities, whether bringing produce to markets, getting kids to school, or mothers to clinics. Billions of dollars continue to be spent on last mile road access, but often with very poor results.
Can drone technology make a difference?
Successful leaders —presidents of countries, chief executives of corporations, or middle managers of counties — focus on a few priorities by deploying the right resources, reviewing progress, and unblocking constraints.
Shahbaz Sharif, the chief minister of the Pakistani province of Punjab (population 100 million) and a tireless, hard driving manager, built a 27 km mass transit system in Lahore in less than a year in 2012-13. This visible show of results, according to many observers, helped his landslide victory in the 2013 election.
Did a specialized unit deliver for the chief minister? No. Just a group of well-chosen, motivated civil servants and, of course, the impending election deadline.
What is therefore fundamentally new or useful about the current ferment in the “science of delivery”? The “delivery unit” approach can work wonders, according to Sir Michael Barber, who headed the Delivery Unit in the United Kingdom from 2001 to 20015 and has distilled his advice into 57 rules in a recent book.
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.
If you want a passport in Pakistan, you wait in line – possibly for hours. You might get to the passport office at the crack of dawn to avoid the queue. The process might be unclear, and there might be people – “agents” – waiting outside the office, offering to help: “For a few hundred rupees, I can fast-track your application.”
The government of Pakistan is trying to fix these problems, including the requests for bribes, rude treatment, and inefficient processing. Their approach is simple and creative and made possible because there are an estimated 123 million mobile phone users in the South Asian nation – about 64 percent of the population, according to the Pakistan Telecommunication Authority.
Beginning this fall, staff at each of the passport office’s 95 locations began collecting the cell phone numbers of all passport applicants. Shortly after each visit, the central headquarters sends the applicant a text message: “Did you face any problem or did someone ask you for money?”
Visiting a technical institution (one that is focused on science and engineering) in India can be a mixed experience. I have been to campuses that have state-of-the-art lab equipment with dedicated staff, and I have also been to others that barely have enough textbooks in their libraries and lab equipment from the 1960s.
Regardless of the type of institution, one thing is certain – even if the buildings are brand new and WiFi abundant, without good governance practices technical institutions in India would be less able to provide good higher education services to students.
To provide some more practical advice on how to embody good governance in the higher education sector, I visited seven institutions in two different states (Maharashtra and Karnataka) to explore best practices, which are summarized below: