Public procurement of services, works and supplies is estimated to account for 15-20% of GDP in developing countries, and up to 50% or more of total government expenditure. Efficient and effective procurement is vital to core government functions, including public service delivery and provision of infrastructure. Weaknesses in procurement systems can lead to large-scale waste of public funds, reduced quality of services, corruption, and loss of trust in government.
When you think of Bhutan, you typically think of the tall mountains of the Himalayas, or you think of this nation adding the ‘Gross National Happiness’, or GNH indicator onto the global development agenda. Well, from now on, you can also think of Bhutan as the first country in the world to have one of their agencies approved to apply “alternative procurement arrangements” or APAs. This may sound trivial in comparison to 7,500 meter high peaks or collective happiness in the Dragon Kingdom. But for the way we do procurement at the World Bank, it’s a real breakthrough and an important step towards becoming a better Bank.