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Opening government: Procurement13/09/2011
Contributor: Transparency International USA
Governments spend from 15 to 30% of gross domestic product on procurement, notably for essential public services, such as clean water, education and health care. The global procurement market is estimated to exceed US$14 trillion. With estimates that corruption can add 20 percent or more to the cost of procurement, failure to address this problem means a staggering potential financial loss, a disastrous impact on citizens denied adequate public services and distorted competition penalizing ethical companies.
Reducing corruption in government procurement requires government, private sector and civil society action to improve transparency, accountability and integrity. This proposal focuses on essential preventive measures by each stakeholder, including:
1. Government: Transparency of government procurement rules and procedures and growing use of technology for information dissemination; accountability through asset disclosure and conflict of interest requirements;
2. Private Sector: Integrity through requirements for private sector suppliers that prohibit bribery, collusion and fraud; and,
3. Civil Society: Accountability through civil society engagement and oversight16 Procurement