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Throughout the pandemic, significant amounts of public funds were disbursed without seeking parliamentary approval, and the procurement process itself became tainted by multiple instances of corruption and cronyism. Among the reform areas identified was the country’s publicprocurementsystem.
There is growing recognition that the publicprocurementsystem can be a strong force for policy implementation, helping to tackle major social and economic challenges faced by governments across the region. Procurement was long seen as a clerical administrative function, rather than a strategic lever.
Approach: The new director of the procurement agency led the development of a data-driven corruption risk monitoring system and worked with a reform team to strengthen the institutional capacity of government buyers, improve cross-agency coordination and increase collaboration with civil society.
Open contracting approach: Supported by OCP’s Lift Impact accelerator program from 2021, Ekiti State’s publicprocurement agency created better opportunities for small businesses and particularly women-led businesses, to participate in public contracts.
In the accompanying Red Flags Explainer , we drew on our experience of building and analysing datasets of governmentprocurement over the past ten years to answer some Frequently Asked Questions about our work, explaining some of the challenges and what can be done to fix or work around them.
Challenge: Indonesia’s publicprocurement sector is highly vulnerable to corruption. Fragmented and inconsistent auditing practices across the decentralized governmentsystem have impeded effective oversight. There was also a lack of data on the volume and outcome of audits.
VIGIA is a unique initiative that allows entrepreneurs to easily find publicprocurement business opportunities in Paraguay, as well as provide real-time high-quality feedback about irregularities. The platform was co-developed by OCP and the business community together with the government. For us, this was a discovery.
The global energy transition, driven by technological change and international commitments to comply with the Paris Agreement, generates uncertainty about future fossil fuel demand, prices, and associated government revenues. Learn more about the IDB’s work on fiscal policy and climate change.
Challenge: In Ukraine, a lack of machine-readable data about procurement appeals made it difficult for government suppliers to defend their rights and interests.
Paradoxically, the subject has so far received rather limited attention, particularly when it comes to analysing the phenomenon systematically, across a variety of (very) different publicprocurementsystems and/or international instruments.
The 2020 European strategy for data ear-marked publicprocurement as a high priority area for the development of common European data spaces for public administrations. The procurement data governance framework is now planned to be developed in the second half of 2023.
A new case study we developed together with Transparency International Ukraine (TI Ukraine) examines how Prozorro’s data analytics tools have become an integral part of the work of more than 30,000 people across government, monitoring institutions, the private sector and civil society, even as the country grapples with Russia’s full-scale invasion.
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