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Procurement Capacity Development: International Targets and General ApproachThe Paris Declaration on Aid Effectiveness highlighted commitments made by donors and partnercountries with regard to strengthening country systems and increasing donor reliance on the use ofthese strengthened systems. Targets for the indicators of progress have been set to reflect the idea thatpartner country systems will improve over time and that as they improve, they will be progressivelyutilised by donors.The Paris Declaration specifies, under the heading “Strengthen national procurement systems”, thefollowing:Partner countries and donors jointly commit to:Use mutually agreed standards and processes to carry out diagnostics, develop sustainablereforms and monitor implementation.Commit sufficient resources to support and sustain medium and long-term procurementreforms and capacity development.Share feedback at the country level on recommended approaches so they can be improvedover time.Partner countries commit to take leadership and implement the procurement reform process.Donors commit to:Progressively rely on partner country systems for procurement when the country hasimplemented mutually agreed standards and processes (Indicator 5).Adopt harmonised approaches when national systems do not meet mutually agreed levels ofperformance or donors do not use them.As for procurement capacity development, the Paris Declaration makes reference to the OECD “GoodPractice paper on Procurement Capacity Development (GPP”) 22 that reflects the insights ofprocurement experts from developing countries and bilateral and multilateral donors. The GPP isstructured in three parts and addresses the following issues:22OECD (2005), Harmonising Donor Practices for Effective Aid Delivery: Volume III, StrengtheningProcurement Capacities in Developing Countries (unpublished), Chapter 2, Good Practice Paper onProcurement Capacity Development.COMPENDIUM OF COUNTRY EXAMPLES AND LESSONS LEARNED […] - OECD 2008 45
The capacity development context 23The GPP discusses the context of the development of procurement capacities and in particular therelationship between a country‟s overall development and procurement strategies and the capacitydevelopment programme that should logically flow from these. In brief:The objective, focus and timing of any procurement capacity development programme should be anintegral part of a country‟s overall procurement strategy. A clear policy is required on how a countrywants its procurement system to evolve over time and the kind of specific capacity demands it willface. The government should articulate a national procurement strategy that specifies what objectivesit wishes to achieve, assign responsibilities, allocates a budget, identifies instruments and sets the timehorizon for the reform process. This strategy also needs to strengthen linkages to other public sectorfunctions and reform programmes, in particular those relating to public financial management,auditing, anti-corruption, public administration and/or civil service reform.One of the core issues to be addressed in procurement capacity development is the need for better cooperationand co-ordination with other relevant public reform processes. For example, a country that iscommitted to decentralisation (such as Indonesia) consequently needs to transfer autonomy forprocurement decisions from the national to the provincial and district level.The national procurement strategy should reflect the role of the private sector. Should privateinvestment in the public sector be maximised? Should procurement be outsourced to private serviceproviders? The private sector can provide valuable assistance in areas such as knowledgemanagement, technical and commercial analysis and assessment, project preparation, projectimplementation and procurement monitoring and evaluation, as well as audits.Professional institutions/associations and academic bodies play a key role in the development ofprocurement capacity by providing a framework for education and the sharing of good practice.Another core issue to address is corruption and bribery. Procurement should be considered as anintegral issue in governance and anti-corruption strategies. Accountable, transparent and ethicalprocurement practices and processes help to reduce the environment within which inefficiencies,including corruption, thrive.Principles for Capacity DevelopmentThe GPP presents UNDP‟s 10 Default Principles for Capacity Development. 24 It emphasises that theprocess or plan for capacity development should not be considered as a blue print. An iterative processis proposed, aimed at creating a viable institutional framework. The principles on which this processshould be based are captured by the concepts of country ownership, broad stakeholder involvement,realistic need assessment, strategic procurement capacity development planning and closely monitoredand flexibly managed implementation.2324OECD (2005), Harmonising Donor Practices for Effective Aid Delivery: Volume III, StrengtheningProcurement Capacities in Developing Countries (unpublished), Chapter 2, Good Practice Paper onProcurement Capacity Development, Part I.OECD (2005), Harmonising Donor Practices for Effective Aid Delivery: Volume III, StrengtheningProcurement Capacities in Developing Countries (unpublished), Chapter 2, Good Practice Paper onProcurement Capacity Development, Part II.46 COMPENDIUM OF COUNTRY EXAMPLES AND LESSONS LEARNED […] - OECD 2008
Page 1 and 2: Compendium of Country Examplesand L
Page 3: ORGANISATION FOR ECONOMIC CO-OPERAT
Page 8 and 9: ForewordIn 2002, the OECD-DAC and t
Page 10 and 11: Background and Purpose of this Pape
Page 12 and 13: The Procurement Assessment Methodol
Page 14 and 15: The Process of Preparing and Planni
Page 16 and 17: Box 1. High-level political support
Page 18 and 19: Table 2. Potential stakeholders in
Page 20 and 21: Based on the assessment reports pro
Page 22 and 23: willing to participate in the asses
Page 24 and 25: Implementing a Procurement Assessme
Page 26 and 27: 1 = areas where substantive work is
Page 28 and 29: Country experiencesMost of the pilo
Page 30 and 31: Indicator 4: Normative and regulato
Page 32 and 33: “Considerations for assessment”
Page 34 and 35: Lao, for example, reports that nati
Page 36 and 37: Figure 4. Possible negative impact
Page 38 and 39: Country experiencesThe usefulness o
Page 40 and 41: They identify and correct mistakes
Page 42 and 43: Box 8. Validation process in Zambia
Page 44 and 45: Making Use of the Assessment Result
Page 48: StakeholdersThe GPP argues that as
Page 51 and 52: Table 4. Compliance and Performance
Page 53 and 54: Engage banks in a dialogue to secur
Page 56 and 57: Linkages with Public Financial Mana
Page 58 and 59: Elements of transparency (transpare
Page 60 and 61: which serves as the externalinforma
Page 62 and 63: Next StepsThe Joint Venture on Proc
Page 64 and 65: CountryLatestprogressreportAssessme
Page 70 and 71: Country Sampling for CPI Stakeholde
Page 80: Country Sampling for CPI Stakeholde
Page 83 and 84: Procurementprocess (30%)10. Method
Page 85 and 86: 4. Member countries should ensure t
Page 88 and 89: Annex DList of Referenced Resources

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