15 Dec 2016
Doyeun Kim, Communications Focal Point, UN Development Business
Public procurement accounts for more than 30 percent of GDP in developing countries and 10 percent to 15 percent in developed countries, according to the International Trade Centre. Photo: UNDP
Public procurement reforms have been rolling out since the 1990s in Africa. Targeting better efficiency – but also more accountability and integrity – in the management of public resources, these reforms can shape procurement into a powerful agent for development.
In the past year, Cote d’Ivoire, Uganda, Somalia, Malawi and Zimbabwe have benefited from projects financed by the World Bank and the African Development Bank in which procurement reforms were part and parcel of larger public sector management goals.
Internal efforts, as well as assistance from international development agencies, are focusing on professionalizing and building capacity in national procurement systems. These efforts are consistent with the goals of good governance and prevention of corruption in the use of public funds, and they are also increasingly being linked to the Sustainable Development Goals, because public procurement can be used as a tool for achieving and sharing prosperity.
What is public procurement?
Public procurement, or the purchase of goods, works or services by public institutions, accounts for more than 30 percent of GDP in developing countries and 10 percent to 15 percent in developed countries, according to the International Trade Centre. It also accounts for a large percentage of government expenditures, in some countries covering more than half of government spending. Its economic significance is evident.