The collapse of global trade, murky protectionism, and the crisis:

VOX
Research-based policy analysis and commentary from leading economists
ing percentage of their GDP purchasing goods, services, and construction, they
should attempt to do so while maximizing the performance of their procurement systems.
In so doing, states should bear in mind that successful public procurement systems
share certain characteristics:
They judge their success in the same manner as successful businesses or savvy consumers,
focusing on value for money spent and customer satisfaction.
They maximise competition, which increases the likelihood that the government
customer obtains the best prices, the highest quality goods and services, and timely
delivery of those goods and services. They appreciate and rely upon the breadth and
diversity of the global private sector, and seek to do business – both directly and indirectly
(through subcontracting) – with the best and the most-attractively priced firms
that offer the most cost-effective talent, facilities, materials, solutions, end products,
services, and, ultimately, results.
By carefully articulating their needs, choosing responsible contractors, drafting
clear and effective agreements, and managing their relationships, they reduce the risk
that contractors will fail to fulfil their bargains in a timely fashion and increase budgetary
and cost certainty.
They maximise transparency and accountability. Not only do successful regimes
employ formal oversight tools, they often empower non-governmental private sector
participants (such as contractors, disappointed offerors, the media, and the public) to
supplement the government's oversight regime. In so doing, these States experience
higher levels of integrity and lower levels of corruption.
They operate efficiently, by recruiting and training talented business people and
then minimizing bureaucracy (employing, for example, uniform rules, procedures,
training, remedy-granting clauses, and forms), leveraging technology, and employing
proven procurement mechanisms and "best practices."
Employing proven tools to achieve good procurement results
The good news is that the tools required for efficient and effective public procurement
are readily available – well-developed legal structures and recognised best practices.
The extensive and detail-oriented US federal procurement regulations reflect
more than a century of hard-learned lessons. International institutions, such as the
World Bank, have developed guidelines for sound public procurement. The EU's procurement
directives offer a useful framework for transparent procurement and a host
of widely agreed-upon minimum standards. The UN Commission on International
Trade Law (UNCITRAL) provides a popular, complete suite of model procurement
laws, and the OECD benchmarks for procurement offer a consensus-based, highly
evolved assessment tool for best practices in procurement. Other related tools address
reducing corruption in public procurement, a critical element in sustaining public
trust in government during these emerging economic crisis and stimulus efforts. Fully
140 nations have signed the UN Convention against Corruption, which calls for specific
measures to stem corruption in procurement. These best practices, if properly
implemented, promise a sound foundation for procurement and instil critical public
confidence in governmental expenditures.
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