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Developing a Strategy for Public Procurement Reform

Developing a Strategy for Public Procurement Reform. Asha Ayoung Lead Procurement Specialist, OPCPR. Summary. A - Importance of Reforming the Public Procurement System B – Know the Environment Bank Country C - Engage the Government D – Carry out the Reform

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Developing a Strategy for Public Procurement Reform

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  1. Developing a Strategy for Public Procurement Reform Asha Ayoung Lead Procurement Specialist, OPCPR

  2. Summary • A - Importance of Reforming the Public Procurement System • B – Know the Environment • Bank • Country • C - Engage the Government • D – Carry out the Reform • E – Consolidate and Sustain the Reform

  3. Importance of Reforming the Public Procurement System • Large values involved and high degree of discretion that politicians and government officials have over procurement • Gains • Contribute to improve PFM system • Savings • Improve Delivery of Service • Contribute to private sector development • Enhance International Investment • Losses • Provides opportunities for corruption which distorts public finance, affects the delivery of public services and undermines efforts to reduce poverty • Brakes initiatives leading to Democracy

  4. Know the Environment(Bank) • Agendas for IDA/IBRD countries differ (CAS) • How does procurement reform fits in the broader Bank’s mandate (GAC, UCS, etc.)? • Integration with other ongoing activities (ESWs, Projects, DPLs etc.)

  5. Know the Environment(Country) Political Economy Analysis is important in advancing challenging agenda such as procurement reforms that affect Governance • It is a tool that gets beneath the formal structures to reveal underlying interests and incentives and institutions that enable or frustrate change • It focuses on how power and resources are distributed and contested in different contexts Done under the leadership of Economists in the Bank and underutilized for procurement reforms as it is not part of current CPAR Instructions

  6. Know the Environment(Country) • Stakeholder Analysis: • Individuals, Groups, Ministries, Associations, Political Parties that can be divided in three categories to understand ambiguity and dynamics • Demand-side v/s supply side • Reform Champions v/s Reform opponents • Winners/Losers • Map out formal and informal Institutions and Governance arrangements • Provide a clear picture about the setting in which stakeholders operate • Mechanisms, laws/policies to ensure integrity and accountability • Essential for coalition building and identification of levers of change

  7. Know the Environment(Country) • Complementing Procurement Assessments with a Political Economy Approach at three levels: Macro level country analysis; (ii) Sector level analysis and (iii) problem driven analysis • Process should be dynamic, ongoing rather than a static output and be an integral part of work of Procurement Specialists that is updated over time and fed back into ESW (procurement assessments and reforms) • Working with experts who have a good knowledge of country and Civil Society Organizations (CSOs) provided important sources of information • Involvement of other Development Partners and National Partners should be judged on a case by case basis

  8. Engage the Government (Entry Points) • Identify country’s concerns and priorities to determine how procurement reform can contribute to achieve country’s goals • Commitment to develop international investment and local private sector • Commitment to fight fraud and corruption • Centralization and Decentralization Policies • Development of national Private Sector • Sector priorities • Regional and International applicable obligations

  9. Carry Out the Reform • Road Map for Reform Agenda • Avoid Dogmatic Approach and adapt reform agenda to country context • Strong independent institutions • Carry out Audits and follow up on Sanctions • Handle Procurement Complaints • Fraud and Corruption • Policy Formulation and Reform • Ongoing Dialogue • Provide Financial and technical assistance and provide platform for sharing experiences

  10. Consolidate and Sustain the Reform Process (Other Factors) • Participatory Approach to ensure that those that benefit either directly or indirectly by the reform have a control over the process • Stakeholders Empowerment and Roles in • policy formulation, oversight, handling complaints in countries that do have strong independent institutions to uphold integrity • Organized Civil Service • Performance of staff, Ability to measure performance, provide incentives to promote good behavior and sanction poor/bad performance • Credible Judicial System • Ability to define and punish sanctionable acts and actors • Access to Information

  11. Thank you.

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