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Assessing country procurement systems and supporting good practice:
The contribution of the 2015 OECD Recommendation on Public Procurement
Janos Bertok, Head of Division, Public Sector Integrity
WTO Symposium on Government Procurement Agreement
17 September 2015, Geneva
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Government procurement as share of GDP and of total govt. expenditures
Source: OECD National Accounts Statistics. (2013) 2
Public Procurement really matters
Estonia
Hungary
NetherlandsKoreaJapan
Ireland
Luxembourg
Czech RepublicGermany
New ZealandCanadaIsrael
Slovak RepublicFinland
United KingdomSwedenTurkey
BelgiumAustria
DenmarkSwitzerland
Spain
PolandOECD(UWA)
NorwayFrance
United States
MexicoItaly
PortugalGreece
Slovenia
28.1
0 10 20 30 40 50
13.0
0.05.010.015.020.025.0
as % share of total government expenditureas % of GDP
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... it matters for business too
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• Public sector efficiency is the second business priority area for reform after product market regulationAnd public procurement the top priority in the public sector:
BIAC Economic Survey, 2014
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Procurement is a major source of corruption: 57% of foreign bribery cases
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Data from the OECD Foreign Bribery Report,
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Supported governments in reforming public procurement systems for sustainable and inclusive growth and trust in government through:
• Building evidence from useful, reliable and comparable data across OECD countries on the performance of public procurement –testing Key Performance Indicators
• Undertaking hands-on peer reviews that provide assessment of public procurement systems, either national or sectorial, and tailored proposals to address implementation gaps in specific context – in Italy, Northern Ireland, Greece, but also Korea, Chile, Mexico, Colombia, Peru but also Morocco, etc
• Identifying good practices and providing international standards on public procurement – Compendiums on Green Procurement, Transparency, Accountability and Anticorruption; on Innovation
• Organising policy dialogue to share insights & shape directions for future reforms, build strategic partnership with private sector: G20-B20
OECD contribution to reforming public procurement
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• Good management: 2008 OECD Recommendation onEnhancing Integrity in Public Procurement focused onintegrity, transparency, accountability, risk control
• Interest in good governance to achieve policy objectivesefficiently has significantly increased
–2015 OECD Recommendation on Public Procurement - supports a shift from an administrative and compliance-based approach to a strategic and holistic approach to realise government policies
–OECD Recommendation on Governance of PPPs
– OECD Recommendation on Fighting Bid Rigging
Guidance for Public Procurement in the 21st century
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Participation
Efficiency
Capacity
Integrity
Access
Balance
E-Procurement
Evaluation
Risk Management
Transparency
Integration
Accountability
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The New Recommendation on Public Procurement: 12 Integrated Principles
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• Supports strategic public procurement: professional capacity to address increasing complexities
• Achieve policy goals such as SMEs, innovation, environmental protection
• Yields returns as the investment in a sound public procurement brings major outcomes: a 1% saving represents €43 billion per year in OECD countries
• Supports risk mitigation such as those arisen from public works, complex digital technology or major events.
Investing in Better PoliciesThe 2015 OECD Recommendation
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• Vision: An international reference for public procurement standards, good practice and forward-thinking
• Implementation of the Recommendation 2015-2018
Implementing the 2015 Recommendation:Federating OECD procurement activities
- Building evidence: - Assessment tools- Key Performance Indicators- Good practices for strategic
use of PP => Green, SMEs, innovation
- Professionalisation- eProcurement
- Toolbox - innovative, practical, collaborative solutions
Data
Policy instrument
Toolbox
Reviews
Network
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3 PILLARSI. ADEQUATE DEGREE OF TRANSPARENCY AND ACCESSIBILITY OF PROCUREMENT INFORMATION
II. EFFECTIVE REMEDIES
III. HIGH STANDARDS OF PROPRIETY AND PROFESSIONALISM
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Integrity In Public ProcurementG20 Principles
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www.oecd.org/gov/ethics/public-procurement.htm
For more information on OECD work on public
procurement and integrity