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Implementing the OECD Principles for Integrity in Public Procurement

Progress since 2008

image of Implementing the OECD Principles for Integrity in Public Procurement

With procurement accounting for 13% of GDP and a third of government expenditures on average in OECD countries, investing in appropriate processes to mitigate risks of waste and corruption leads to efficiency gains considering the financial stakes. In 2008 OECD countries committed to promoting transparency, integrity, good management as well as accountability in procurement with the adoption of the OECD Recommendation on Enhancing Integrity in Public Procurement. This assessment of progress made in OECD countries shows that as a result of austerity measures governments have been under tight budgetary constraints to provide smarter procurement, that is better service delivery at lower cost. Because environmental protection has become a growing societal imperative, the review of progress made shows that there is a strong political push in OECD countries to integrate environmental considerations in procurement. With the economic crisis, some governments have been tempted to use procurement to ease its socio-economic impact on societies by providing a substitute for direct social policies to support employment for specific communities. However few governments have invested in prioritising the objectives pursued through procurement, assessing their costs or benefits, and measuring their actual impact.

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Foreword and Acknowledgements

Procurement is an important tool for ensuring sound, effective and transparent management of public resources. Accounting on average for 13% of GDP, procurement represents a third of government expenditures in OECD countries, with local governments carrying out more than half (55%) of these expenditures. Procurement is also increasingly used as a strategic instrument to pursue government objectives, such as job creation, innovation, environmental protection, and the development of small and medium enterprises (SMEs). At the same time, however, it is the activity with the highest perception of bribery risk.

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