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Public Procurement

Is public procurement a rich country’s policy?

Simeon Djankov's picture
Kazakhstan. Photo: Kubat Sydykov / World Bank

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?

Using country procurement systems in China and Vietnam to improve efficiency, transparency and competition

Ba Liu Nguyen's picture
Chongqing, China. Photo: Li Wenyong / World Bank

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. 

Making procurement smarter: Lessons from the Amazon

Laura De Castro Zoratto's picture
 In the Amazon region of Brazil, near Manaus. Brazil. Photo: © Julio Pantoja / World Bank

When the word “Amazonas” is mentioned, what do you think of? Mythical rainforests and winding rivers?  The “lungs of the world”? A center of procurement excellence in the Brazilian federation?

A new generation of action promises to open up government contracting in Africa

Robert Hunja's picture
Dr. Flora Lubowa is a medical officer at the Magomeni Health Center. Dar es Salaam, Tanzania: Photo Arne Hoel

I have worked on public procurement and governance for most of my life. But I have never been more excited to finally have a solution at hand that has potential to change the legacy of opaqueness, fraud and lack of effectiveness in public contracting in many African countries.
 
Africa still need billions in investments to build infrastructure and provide quality services to its citizens, many of them vital: health care centers, food for school children, water services and road to help farmers market their produce. Investments as part of the Sustainable Development Goals in infrastructure alone carries a price tag nearly $100 billion a year. Unfortunately, like in many countries around the world, public contracting in Africa has been characterized by poor planning, corruption in picking contractors and suppliers and contracts are poorly managed.
 
But the good news is that this is changing. The series of blogs I’m kicking off will highlight the shifting of the norm towards open contracting in Africa.

Pushing the frontier of e-government procurement in Africa with the open contracting standard

Lindsey Marchessault's picture

Public procurement is a linchpin for good governance and effective public service delivery, both of which are critical to the sustainable development of Africa. In many countries throughout the region, strengthening procurement to address weaknesses in public sector governance has become a priority. 
 

Innovation and collaboration for rapid results in public procurement

Sarah Lavin's picture


The World Bank’s Governance Global Practice (GGP) is integrating its approach to address technical and political constraints to effective public procurement in Cameroon.
 
In efforts to boost efficiency and integrity in public spending, the Government of Cameroon created the Ministry of Public Procurement (MINMAP), the first of its kind in the world, to take responsibility for providing oversight to public contract procurement and management. It is also in charge of executing high value contracts on behalf of all sector ministries and designing public procurement policies and capacity development strategies in partnership with the pre-existing public procurement regulatory body (ARMP).

China and the World Bank: Partners for reform

Jingrong He's picture


In the last ten years, China’s public procurement market has grown tenfold reaching an estimated $270 billion in 2013. Such significant growth has made the improvement of the public procurement system an imperative for the Chinese Government.

In the context of China’s commitment to enhance its procurement system, it is also seeking to accede the World Trade Organization’s Government Procurement Agreement (WTO GPA). As China looks to necessary procurement reforms, the World Bank has partnered with the Ministry of Finance to support these efforts, which have the potential to have transformational impact.

Myanmar sees early progress in its public procurement reform

Zhentu Liu's picture
 Markus Kostner / World Bank


Myanmar is embarking on a triple transition: from an authoritarian military system to democratic governance; from a centrally directed economy to market oriented reforms; and from several decades of conflict to peace.

Since 2011, leaving behind decades of isolation, fragility and conflict, a reformist government has steered unprecedented political and economic reforms intended to open Myanmar to the global economy, boost growth, and reduce poverty.
 
As part of its economic reforms, Myanmar seeks to establish a modern public procurement regime and has taken a series of actions including the issuance of two Presidential Instructions and two directives on Public Procurement to establish the basis for an open and competitive public procurement system.

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.

Weekly Wire: The Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Mashable
How to Use Mobile Devices to Solve Global Problems

"In 1999, half of the world had either never used a phone or had to travel more than two hours to reach the nearest one. Years later, mobile devices are being used in extremely innovative ways to connect and empower people around the world.

'It's not about being connected,' said Larry Irving, co-founder of the Mobile Alliance for Global Good, at the 2012 Social Good Summit on Sunday. 'It's about being connected with a purpose.'" READ MORE

Transparencia Mexicana
A New Role for Citizens in Public Procurement

"Globalisation has the potential to raise living standards for citizens around the world, as well as bearinthe risk of excluding people from those benefits. Ensuring that globalisation contributes to a more equitable and sustainable form of economic growth requires the participation of citizens in monitoring how the global economy is changing and how it impacts the life of people.

The Arab Spring has shown the power of people in their potential to change political systems. Transparency International, the global civil society organisation leading the fight against corruption, aspires to support the emergence of a broad-based social movement standing up to corruption, especially where it violates human rights and threatens the most vulnerable. In Transparency International’s Strategy 2015, we underline that sustainable change requires broad public support. A widespread public engagement will reinforce the demand for solid institutions and provide a strong mandate for political leadership to succeed in their commitments.”  READ MORE


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