Procurement and Development Effectiveness

A LITERATURE REVIEW COMMISSIONED BY EURODAD

December 2009

About Eurodad
EURODAD (the European Network on Debt and Development) is a network of 59 nongovernmental organisations from 18 European countries who work together on issues related to debt, development finance and poverty reduction. The Eurodad network offers a platform for exploring issues, collecting intelligence and ideas, and undertaking collective advocacy.

Eurodads aims are to:

Push for development policies that support pro-poor and democratically defined sustainable development strategies Support the empowerment of Southern people to chart their own path towards development and ending poverty. Seek a lasting and sustainable solution to the debt crisis, promote appropriate development financing, and a stable international financial system conducive to development.

More information
More information and recent briefings at: www.eurodad.org Subscribe free to Eurodads newsletter "Development Finance Watch": www.eurodad.org/newsletter/index.aspx?i d=108

Acknowledgements
Literature review written and researched by Juanita Olaya, with comments from Nuria Molina and Bodo Ellmers, Eurodad.

FOREWORD

ince the beginning of this decade, Northern and Southern country governments, multilateral agencies, and civil society have been actively contributing to developing and beginning to implement crucial reforms to make aid more effective for poverty reduction. However, there are certain areas where the aid effectiveness agenda has severe shortcomings and where implementation is sorely lagging behind. Eurodad identified public procurement policies and practices by developing country governments and aid agencies as a key area in which more progress is needed in order to improve the effectiveness of development aid.

While Eurodad and other civil society organisations continue to monitor the implementation of agreements made in Accra, civil society is increasingly concerned with moving the debate towards the final goal of the aid effectiveness agenda: the role of aid in supporting meaningful development strategies that enable developing countries to move on from aid dependency. The use of country systems is fundamental to increasing developing country ownership and building local capacity. This is why Eurodad has chosen to focus on this area as it launches its new research project to inform civil society positions ahead of the upcoming High Level Forum that will take place in Seoul in 2011. Public procurement accounts for up to 40 percent of GDP in some developing countries. Besides being an important share of these countries economies, procurement policies are an important instrument to achieve socioeconomic goals such as economic development, poverty eradication and social equity. Procurement policies are also an important policy tool in the hands of governments to boost the national socioeconomic fabric as part of their development strategies to gradually reduce aid dependence.

In March 2005 in Paris, representatives from over one hundred governments and multilateral agencies committed their countries and organisations to continuing to increase efforts in harmonisation, alignment and managing aid to produce results with a set of monitorable actions and indicators. Three years later in the Accra High Level Forum, governments committed to accelerating progress on crucial issues to improve the effectiveness of aid such as predictability, conditionality, aid untying, and the use of country systems. Eurodads and other civil society research in recent years unveils the limited progress made by rich country governments in implementing the commitments made.

In aid dependent countries in particular, a considerable share of public procurement is financed through Official Development Assistance (ODA) injected into national budgets as budget support. The use of developing countries own procurement systems was a donor commitment included under international agreements on aid effectiveness including the Paris Declaration and the Accra Agenda for Action. A second commitment was to untie aid to a maximum extent, aiming to increase the efficiency and development effectiveness of aid agencies own procurement. Eurodad is now starting a new major research project which will mirror the successful Turning the Tables report published ahead of the High Level Forum in Accra and which was very well received by government officials and civil society organisations. The research will comprise country case studies and a synthesis report whose findings will be used in Eurodads activities towards the Fourth High-Level Forum on Aid Effectiveness in 2011. This literature review is a part of this project. Its main purpose is to map and review the relevant literature on procurement as a development policy tool and to inform the case study work. But readers who are interested in the developmental and socioeconomic implications of procurement by aid agencies and recipient country governments might also find it a useful stand-alone source of information for their work.

The new emphasis on using country systems as a central part of the current aid effectiveness reform agenda has led to a bulk of new studies mainly produced by the World Bank and the OECD informing the positions of donor countries. Most of this literature sees procurement as a neutral act of purchase, and focuses on the quality of procurement systems in order to increase value for money and ensure that aid monies are spent on the intended purposes. For most developing country governments, however, procurement has always been considered as an economic policy tool with which they can promote industrial development by channelling public finances to their own countries infant industries. Civil society organisations have traditionally focused on the use of public procurement as a means by which public authorities can promote socially and environmentally friendly policies. According to these views, governments are obliged to promote and protect social and gender equity, core labour standards, decent work and environmental sustainability when procuring works, supplies or services. In developing countries, the potential is huge since on average procurement accounts for 70% of public spending. But the developmental and socioeconomic implications have largely been neglected by recent analysis by the World Bank and the OECD. Eurodads work intends to fill at least a part of this gap. Bodo Ellmers, EURODAD.

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................5
PART 1. LITERATURE ON THEORY AND POLICY ON PROCUREMENT IN DEVELOPMENT...............7

I. II. A. B.

GENERAL BIBLIOGRAPHY ON PROCUREMENT AS A DEVELOPMENT TOOL..................7 TAXONOMY OF THE ISSUES ..........................................................................................................................8 Procurement as an instrument of social and economic policy .................................................... 8 Implementation of Procurement Policies ............................................................................................... 9 1. Which policies can be promoted?.................................................................................. 9 General Literature................................................................................................................ 9 Specific Targets..................................................................................................................... 9 2. How can they be promoted? ........................................................................................ 11 Policy Perspective ............................................................................................................... 11 Governance and Procurement...........................................................................................12 The use of sanctions ............................................................................................................ 12 3. C. 1. 2. 3. D. Who can best do it? ....................................................................................................... 14 Procurement tools and other particular agendas ........................................................................... 14 Procurement and Trade: the linkage discussion ..................................................... 15 Procurement and Aid: the conditionality / tied aid discussion............................ 16 Procurement Reform ....................................................................................................... 17 Evaluation of procurement policies and empirical research ..................................................... 18 20

PART 2. POLICIES AND PRACTICES BY GOVERNMENTS AND AID AGENCIES (SELECTED)

I. SOME LITERATURE AND RESOURCES ON PROCUREMENT AND DEVELOPMENT BY COUNTRY (SELECTED COUNTRIES)............................................................................................................................ 20 II. POLICIES AND PRACTICES BY AID AGENCIES .................................................................................. 25

ANNEX: BIBLIOGRAPHY ( LIST IN ALPHABETICAL ORDER)...................................................31

INTRODUCTION

his document has been commissioned by Eurodad as part of the project Assessing and improving aid effectiveness implementation through civil society research and advocacy. Its purpose is to provide a literature review on development-related procurement policies and practices. The aim of the review is to advise on how to identify the contribution and potential of procurement policies and practices for development effectiveness. The document aims to be a tool for ongoing research. Within the framework of procurement and development, the contents of this review include literature references to public procurement theory and also policies and practices of developing country governments, aid agencies, international organisations and, when relevant, literature dealing with the implications of the use of procurement as a development tool for relevant international agreements (e.g. WTO, OECD). The documents, references and literature included are varied. They cover academic works from different disciplines (economics, political economy, public policy, law) but also relevant grey literature from multilateral institutions (e.g. OECD, World Bank, UN agencies), bilateral aid agencies and NGOs. 5

On the topic of procurement and development one persistent issue in the literature is the absence of empirical assessments of its impact. The case studies currently undertaken by Eurodad on the procurement policies and practices of aid agencies as well as recipient country governments which this literature review is supposed to inform therefore seem to fill a very pertinent gap. The document is structured in two parts. The first focuses on literature that deals with the issue from a more theoretical or policy perspective, looking at the main issues and any questions that arise: the use of procurement as a policy tool, and the implementation of such policies. It also includes a section on the interaction between this topic and other specialized topics like trade, aid effectiveness (tied aid and/or the use of country procurement systems) and procurement reform. In this part, the comments or general issues are accompanied by shadowed boxes that indicate the respective literature; in some cases a description of the book or paper has been included and in most cases these have been taken from the abstracts or the texts themselves. The second part focuses on policies and practices of selected developing countries and aid agencies. The selection has taken into consideration the focus described in the terms of reference for

the case studies that are part of the research effort Eurodad is undertaking in the area of procurement. The documents in this section include policy guidelines but also reports and evaluations and other third party assessments when available. Finally, an Annex incorporates the literature referred to previously, arranged in alphabetical order. Finally a word on the information available. The information by country and aid agencies is scattered and uneven. Countries such as Ghana, Mozambique and Indonesia have received much more attention in the literature than Ecuador, Nepal or Liberia. Also, because the EU has had internally a lot of experience in this matter there are far more resources and literature with a focus on the EU than on elsewhere. A more in depth look at developing countries is marked by this EU focus. The references that are most relevant to the focus of this document have been included here, but there are also other individual country studies less pertinent to this document, but that may still be deemed relevant at some point. The use of procurement as a policy tool for development is a broad topic and touches on other topics (like aid effectiveness, trade liberalisation etc) that are also extensive. Again, basic documents and references on these topics have not been included, having chosen to instead to focus on documents more directly relevant to procurement. In this sense, this review is not exhaustive.

PART 1. LITERATURE ON THEORY

AND POLICY ON PROCUREMENT IN DEVELOPMENT
This first part includes references to the more theoretical and public policy oriented literature on the subject of procurement and development.

the tensions between the economic function of procurement and the social uses of procurement is discussed, and the outcomes of controversies concerning the legitimacy of the integration of social values into procurement are analyzed. Dunoff, Jeffrey L. 2009. Linking International Markets and Global Justice. Michigan Law Review Vol. 107 (April):1039.

This is a paper in response to McCruddens book (McCrudden, 2007). Arrowsmith, Sue and P. Kunzlik, eds. 2009. Social and Environmental Policies in EC Procurement Law. Cambridge: Cambridge University Press.

I. GENERAL BIBLIOGRAPHY ON
PROCUREMENT AS A DEVELOPMENT TOOL
Below are some references to the main authors and pieces of work in procurement and development literature. While the topic of procurement inevitably has a legal angle, these authors provide a focus that includes more of a public policy angle. These references are relevant across the different issues. McCrudden, Christopher. 2007. Buying social justice: Equality, government procurement, and legal change. New York: Oxford University Press.

Buying Social Justice analyzes how governments in developed and developing countries use their contracting power in order to advance social equality and reduce discrimination, and argues that this approach is an entirely legitimate and efficient means of achieving social justice. The book looks at the different experiences of a range of countries, including the USA, the UK, and South Africa. It also examines the impact of international and regional regulation of the international economy, and questions the extent to which the issue of procurement policy be regulated at the national, European or international levels. The role of EC and WTO law in mediating

In developing public procurement policy, governments are often concerned not only with value for money but also with promoting their social and environmental objectives. However, imposing social and environmental requirements makes it harder for some suppliers to participate in public procurement. EC law thus limits the ability of national governments to implement such policies. But how should the balance be struck between these trade concerns and the desire of national governments to use procurement as a policy tool? And should the EC even harness Member States procurement power to EC-wide objectives, such as green energy policy? Despite the new provisions included in the ECs new (2004) procurement directives, important issues remain unresolved. This volume focuses on new issues in the field, notably the innovative provisions in the new directives, new academic thinking and areas neglected in the debate, such as the impact of EC law on the CSR policies of private utilities. Extensive introductory chapters, by leading specialists in the field, allow readers to understand the key principles and rules that govern this complex area. [The book] Provides detailed analysis of grey areas of the law, allowing readers to assess the legal risks of pursuing different horizontal policies through procurement.

Offers new thinking on important areas of EC procurement policy, enabling readers to keep up with the latest thinking in a controversial field. Arrowsmith, Sue and Martin Trybus, eds. 2003. Public Procurement: The Continuing Revolution. London: Kluwer Law International.

This has a more legal perspective but also deals with trade issues. Arrowsmith, Sue and Arwel. Davies, eds. 1998. Public Procurement Global Revolution. London: Kluwer Law International.

procurement markets. () discusses two principal public policy tools through which competition can be maintained and enhanced in public procurement markets international trade liberalisation and competition policy. While the article draws particularly on policy developments and experience in the United States and (to a lesser extent) Europe, an effort is made to illustrate the universality of the issues raised and their significance for developing as well as developed countries. Quoting McCrudden 2007, 73 footnotes not included, in regards to the extent of the GPA: Secondly, the various provisions of the Agreement relating to the provision of information to potential suppliers, contract awards, qualification of suppliers and other elements of the procurement process provide a framework that is intended to ensure transparent and non-discriminatory conditions of competition between suppliers, including both domestic and foreign suppliers. The need for such a framework of rules to ensure competition derives from the potentially overwhelming pressures that most governments face to limit competition and use procurement processes to benefit particular suppliers. However, the argument opposing the use of procurement as a policy tool is less common nowadays for various reasons: There is more agreement that the WTO and most regional trade agreements leave some policy space for non discriminatory policies that have social and environmental objectives. (Arrowsmith 2009) When it comes to public procurement most OECD countries have long standing, domestic buy local policies. In addition the last fiscal crisis saw an increase in support of these policies as part of stimulus packages, particularly in the US. Others question the choice of policy tools: considering that other policy tools

II. TAXONOMY OF
THE ISSUES
In this section, I include an outline (with a relevant bibliography) of some of the most salient issues in the literature regarding the use of procurement as a development tool.

A. PROCUREMENT AS AN INSTRUMENT OF SOCIAL AND ECONOMIC POLICY

Does not oppose market objectives (McCrudden, 2007)

or It squarely opposes market liberalisation needs (Literature on trade liberalisation, competition policy and WTO mainly). On this second point of view, see for example: Anderson, Robert D. and William E. Kovacic. 2009. Competition Policy and International Trade Liberalisation: Essential Complements to Ensure Good Performance in Public Procurement Markets. 18 Public Procurement Law Review Issue 2. This article reviews and synthesises relevant literature and policy developments concerning the challenges involved in ensuring effective competition in public 8

can be made available to pursue the same economic and social objectives, why use procurement? Why would procurement be the favourite policy tool? (Dunoff 2009) Others warn about the use of the law as a mechanism: the effect of law is overestimated, laws alone do not achieve anything and it depends on how they are implemented (Arrowsmith 2009).

B. IMPLEMENTATION OF PROCUREMENT POLICIES

In this section I include references to literature that deals with basic implementation questions: Which policies can be promoted? How? By Whom?

1.Which policies can be promoted? General Literature

Arrowsmith and Kunzlik 2009; Brammer, Steven and Helen Walker. 2007. Sustainable procurement practices in the public sector: An international comparative study. Working Paper Series 2007-16. University of Bath: School of Management. McCrudden, Christopher. 2004.Using public procurement to achieve social outcomes. Natural Resources Forum, 28(4), 257-267. McCrudden, Christopher. 2007-a. Corporate Social Responsibility and Public Procurement. In Mcbarnet, Doreen, Aurora Voiculescu, and Tom Campbell, eds. The New Corporate Accountability: Corporate Social Responsibility and the Law. Cambridge: Cambridge University Press. Steurer, Reinhard, Gerald Berger, Astrid Konrad, and Andre Martinuzzi. 2007. Sustainable Public Procurement in EU Member States: Overview of government initiatives and selected cases. Final Report to the EU HighLevel Group on CSR, RIMAS -Research Institute for Managing Sustainability.

On the History of procurement as a policy instrument see: McCrudden 2007; Trepte,P. 2004. Regulating Procurement: Understanding the Ends and Means of Public procurement Regulation. Oxford: Oxford University Press.

On procurement as a fiscal tool and also in the US experience: Catlaw, Thomas J. Socially Responsible Supply Management: Thinking Global in Local Government Purchasing during a Fiscal Crisis. Arizona State University.(no date) http://www.transformgov.org/files/whi tepaper/4c_Innovating_with_Socially_R esponsible_Supply_Management_Tom_ Catlaw.pdf Coggburn, J. D and D. Rahm. 2005. Environmentally preferable purchasing: Who's doing it in the United States? Journal of Public Procurement, 5(1), 2353. Cummings, G., R. E. Lloyd, Y. Qiao, and Thai, K. V. 2006. State and local procurement preferences: A survey. Herndon, VA: National Institute of Government Purchasing. Lynn Jr., L. E. 2006. Public management: Old and new. New York: Routledge. Matthews, D. 2005. Strategic public procurement in the public sector: A mask for financial and administrative policy. Journal of Public Procurement, 5(3), 388-399.

Specific Targets
Among the types of policy aims that can be targeted using public procurement as a tool are anti-discrimination or affirmative action policies ( race and gender), environmental standards, employment policies and labour rights issues, economic growth and industrial development policies ( SME support, recovery plans, diversification,

entrepreneurship promotion etc). Other policies can include the promotion of ethical standards, the support of people with disabilities and health and education policy. In this section I include references to some of them. a. Anti-discrimination ( race and gender) or affirmative action For example: South Africa Caron, David. 2002. The Structure and Pathologies of Local Selective Procurement Ordinances: A study of the Apartheid-Era South Africa Ordinances. University of California Public Law Research Paper 101. A legal challenge to a South African law designed to promote black economic empowerment is currently pending. The case brought to the International Centre for Settlement of Investment Disputes (ICSID) at the World Bank is as follows: Piero Foresti, Laura de Carli and others v. Republic of South Africa (ICSID Case No. ARB (AF)/07/1). Status updates on the case are available on the ICSID website. International Centre for Settlement of Investment Disputes, List of Pending Cases, http://icsid.worldbank.org/ICSID/Fron tServlet.

and Development Programme. EEDP LOG BP 08/02 (June). c. Employment policies, Labour rights and standards ILO -International Labour Organisation. 2008. Labour Clauses in Public Contracts. International Labour Conference 97th Session. ORourke, Dara. 2003. Outsourcing Regulation: Analyzing Nongovernmental Systems of Labor Standards and Monitoring. The Policy Studies Journal, Vol. 31, No. 1: 1-29. Shezi, S. 1998. Public Procurement as an Instrument of Government Policy. Paper delivered to the 9th International Public Procurement Association Conference, Copenhagen, Denmark. June 1998. Available online: http://www.pwdprocure.co.za/orienta tion.html Nielsen, H.K. 1995. Public Procurement and International Labour Standards. Public Procurement Law Review (4) 94.

d. Economic growth: Buy Local policies Special SME promotion policies Correcting market imperfections Promoting entrepreneurship Diversifying the local economy

b. Environmental standards Kunzlik, P. 1998. Environmental Issues in International Procurement. , In Sue Arrowsmith, Sue and Arwel Davies, eds. Public Procurement Global Revolution. London: Kluwer Law International. OECD -Organisation for Economic Cooperation and Development. 2003. The environmental performance of public procurement: Issues of policy coherence. Paris: OECD. Brack, Duncan. 2008. Controlling Illegal Logging Using Public Procurement Policy. Chatham House Briefing Paper. Energy, Environment Burgi, M. 2007. Small and mediumsized enterprises and procurement law - European legal framework and German experiences. 16 Public Procurement Law Review 284. Hatzis, N. 2009. The legality of SME development policies under EC procurement law. In Social and Environmental Policies in EC Procurement Law. Sue Arrowsmith and P. Kunzlik, eds. Cambridge: Cambridge University Press. Rolfstam, Max and Leif Hommen (University of Lund) with Jakob Edler (Fraunhofer ISI, Karlsruhe) in

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cooperation with Lena Tsipouri (University of Athens; CERES, Athens) John Rigby (PREST, Manchester). Literature Review: Innovation and Public Procurement. In Innovation and Public Procurement. Review of Issues at Stake ( No date). Available under ftp://ftp.cordis.europa.eu/pub/innova tionpolicy/studies/chapter2_literature_rev iew.pdf Mardas, Dimitri. 2005. The Latest Enlargement of the EU and 'Buy National' Rules. The World Economy, Vol. 28, No. 11, (November) pp. 1633-1650. Available at SSRN: http://ssrn.com/abstract=857837 or DOI: 10.1111/j.14679701.2005.00750.x

possible policies can be described as follows: Host country (contract giver) In regards to their own companies and to foreign companies in its territory, using: Restrictive/selective tendering procedures Incentives to particular bidder/contractor characteristics Community contracting/Labour intensive preferences Set asides (US coined term) Debarment and other forms of sanctioning undesirable practices

Donor/Funding Entity In kind aid (procured) Tied aid (to be procured) Conditionality Their own procurement regulations Projects to support the local economy/social agenda in regards to procurement Debarment and other forms of sanctioning undesirable practices

e. Poverty reduction Watermeyer, Ron. 2000. The Use of Targeted Procurement as an Instrument of Poverty Alleviation and Job Creation in Infrastructure Projects. Public Procurement Law Review 2, 5, 226-50. Watermeyer, Ron. 2004. Facilitating Sustainable Development through Public and Donor Procurement Regimes: Tools and Techniques, Public Procurement Law Review 30-55. (Containing a detailed discussion of the objectives of public procurement systems, including socio-economic goals).

Home country. In regards to their own companies operating abroad (host territories) and to host based companies/providers (imports): Procurement Activism ( The Massachusetts Burma law) Offsets Import preferences Donor policies (Development cooperation agencies) Project finance policies and support ( ECAs, subsidies, etc) Debarment and other forms of sanctioning undesirable practices

2.

How can they be promoted?

Policy Perspective
From a procurement point of view, there are three policy focuses or sources: the contract giver (host country), the donor or funding entity (including IFIs) and the home country, this is the country where foreign companies that would like to access government contracts in the host country are based or registered. The map of such

Although one could map the issue in this way, most of the literature focuses on the host government dimension (national procurement policies and practices), much

11

less on the home and donor dimension and the latter, only indirectly through the tiedaid discussion. This is not necessarily problematic, although it does ignore certain contradictions that may arise, for example: Home countries may be very willing to establish restrictions on imports, and development cooperation policies to buy from home (including tied aid and aid conditionality) but less adamant to see restrictions to government procurement markets abroad for their own companies. It loses perspective as regards the range of policy tools (other than just procurement policy) that have the same economic and social objectives. There is little or no empirical analysis on: The actual economic and social impact of these policies. How procurement compares to other policy instruments in achieving social, economic and environmental goals.

well-designed policies, including policies to use procurement for development. This is particularly true as public contracting (or procurement) is particularly sensitive to corruption and easily subject to abuse. In addition, many critiques of the use of procurement as a development tool start from the premise of its vulnerability to abuse. Some of the more practical literature that discusses transparency, accountability and corruption in procurement: OECD Principles for Integrity in Public Procurement. April 2009. Paris: OECD Wiehen, Michael and Olaya, Juanita. 2006. How to Reduce Corruption in Public Procurement: The Fundamentals. In Handbook for Curbing Corruption in Public Procurement, Part I, pp. 13-105. Berlin: Transparency International. OECD. 2007. Integrity in Public Procurement - Good Practice from A to Z . Paris: OECD. Ware, G; Shaun Mos, and Edgardo Campos. 2007. Corruption in Public Procurement: A perennial Challenge. In The Many Faces of Corruption. Tracking Vulnerabilities at the Sector Level. Edgardo Campos and Sanjay Pradhan, eds. Chapter 9, p295-334.

According to (McCrudden 2007) procurement linkages through regulation have been of very little use outside the EC where it has been used actively. The only exceptions are the US, Canada, Malaysia and South Africa. This merits looking at literature from the EC as it is more abundant in regards to developing countries, in comparison with other regions (see for example Arrowsmith et al 2009).

Governance and Procurement

On the question of how development policies can best be promoted, the literature on governance (particularly on transparency and anti-corruption) should be taken into account. In particular, there is agreement that corruption affects development directly by diverting funds from projects and activities intended for public benefit into the private pockets of corrupt people. Also noted is that governance problems affect the effectiveness of otherwise well-meant and 12

In addition, the literature on Procurement Reform is increasingly concerned with other governance aspects of procurement that may affect its effectiveness and impact, including organizational arrangements, recommendations on process management and professionalization of procurement officials. However, this is mainly technical and efficiency driven literature, which exceeds the focus of this review.

The use of sanctions

Debarment (also known as blacklisting) is perhaps the most effective tool in the public procurement realm to sanction contractors misbehaviour. Debarment is the exclusion of individuals or organisations from contracting opportunities on specific

grounds. Debarment systems are however difficult to implement, face strong opposition from the private sector and are prone to abuse if they lack necessary transparency and accountability. The most common use of debarment systems is to exclude from public contracting opportunities companies or individuals who have committed a crime (fraud, corruption, economic crimes or terrorism) or where procurement has not taken place according to the laws and regulations. To my knowledge, there is no debarment system for breaching other obligations such as the fulfilment of environmental or social standards, although many government contracts do include contract termination clauses when the contractor doesnt fulfil its obligations and these standards are often (or can be) included among them. Debarment can occur nationally or internationally. In their legislations, most countries include provisions for the exclusion of contractors. Internationally, the leading system is that of the World Bank, which has been subject to revision during recent years. The WB sanctioning system operates only in cases of fraud, corruption, coercion, collusion or obstruction (Sanctionable Misconduct) in connection with World Bankfinanced projects. While there are still critiques of this system, it is by far the most developed at the international level and is adhered to by other IFIs and other organisations. For example, the Asian Development Bank, the IDB and the African Development Bank also have debarment systems and some have included automatic debarment once the WB has issued a debarment sanction. More information about the WB sanctioning system can be found here: http://web.worldbank.org/WBSITE/EXTER NAL/EXTABOUTUS/ORGANIZATION/ORG UNITS/EXTOFFEVASUS/0,,menuPK:360106 6~pagePK:64168427~piPK:64168435~t heSitePK:3601046,00.html

On debarment systems and their transparency and accountability see Transparency Internationals recommendations for the EU debarment system here: http://www.transparency.org/global_prior ities/public_contracting/key_sectors/specia l_topics See also: Audit of Compliance with Procurement Requirements by the Millennium Challenge Corporation and Its Compact Countries. Audit Report No. M-000-008-02-P March 3, 2008 Opinions on contractor vetting at MCC report from the Auditor General with focus on operations in Ghana, Armenia and Honduras http://www.usaid.gov/oig/public/mcc/m000-08-002-p.pdf USAIDs regulations on exclusion of suppliers. They refer to the WB debarment system and to the US internal debarment system for exclusion of contractors. USAID ADS Chapter 313. Eligibility of Suppliers, Contractors, and Recipients. http://www.usaid.gov/policy/ads/300/31 3.pdf One international instrument for enforcing standards such as these is the monitoring mechanism to the OECD Standards for Multinational Enterprises known as the OECD National Contact Point system (NCP). It is available here: http://www.oecd.org/dataoecd/56/36/1 922428.pdf) In the past they have been called upon to be involved specifically in cases of labour rights and respect for environmental standards. The role of the NCP (see http://www.oecd.org/document/60/0,334 3,en_2649_34889_1933116_1_1_1_1,0 0.html) as described by the OECD is as follows:

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The National Contact Point (NCP) is a government office responsible for encouraging observance of the Guidelines in a national context and for ensuring that the Guidelines are well known and understood by the national business community and by other interested parties. The NCP gathers information on national experiences with the Guidelines, handles enquiries, discusses matters related to the Guidelines and assists in solving problems that may arise in this connection. When issues arise concerning implementation of the Guidelines in relation to specific instances of business conduct, the NCP is expected to help resolve them. Generally, issues are dealt with by the NCP in whose country the issue has arisen. Any person or organisation may approach a National Contact Point to enquire about a matter related to the Guidelines. (See http://www.oecd.org/document/60/0,334 3,en_2649_34889_1933116_1_1_1_1,0 0.html) The NCPs are not meant to issue sanctions themselves but rather to try and address the issue. In extreme instances, where there has been a case of criminal conduct, the only option is to inform prosecution authorities. The effectiveness of the NCPs has been questioned. See for example: Van Buiren, Shirley. 2007. National Contact Points and the Handling of Complaints. Is the functional equivalency gap widening? OECD Watch. (Available under http://www. oecdwatch.org/cases/Case_102/376/at_ download/file)

and questions whether such distinction is at all relevant. Distinction is valid and relevant: (McCrudden 2009), (Arrowsmith et al 2009, 2003) If it acts as regulator it is bound by international law has less policy room for manoeuvre (McCrudden 2007). If it acts as market player it has more room to manoeuvre, policies can be inserted as contractual clauses (McCrudden 2007). Can the State have different capacities and room to act if acting as one or the other? (Dunoff 2009). The Distinction is not relevant as the State remains the State even as a market player (Dunoff 2009). (McCrudden 2007) (Arrowsmith 2003 and 1998) (Dunoff 2009) (Daimith T. 1979) Regulation by Contract the New Prerogative. Current Legal Problems 41. (Quoted by McCrudden, discussing the question of contracts as regulatory means)

C. PROCUREMENT TOOLS AND OTHER PARTICULAR AGENDAS

The question of procurement and development is mostly discussed in connection with other issues, in particular trade, (tied) aid and procurement reform. I include here references to literature that lie within these three areas. It is important to note, however, that the issue is also dealt with by other topics including corporate social responsibility issues, corruption, and human rights.

3.

Who can best do it?

This part looks into whether the State implements procurement for development policies as regulator or as market player, 14

1. Procurement and Trade: the linkage discussion Policy space

There are distinct views on whether trade commitments allow government policy space to use procurement as a social or economic policy instrument. Some view the restrictions as tight and valid and propose ways to go around them. Others argue that the provisions in trade agreements enable reasonable policies as long as they do not entail discrimination. General references on this topic: Wilsher, D. 2009. Reconciling national autonomy and trade integration in the context of eco-labelling. In Social and Environmental Policies in EC Procurement Law. Sue Arrowsmith and P. Kunzlik, eds., Chapter 10. Cambridge: Cambridge University Press. Arrowsmith, Sue. 1995. Public Procurement as a Tool of Policy and the Impact of Market Liberalisation. 111 Law Quarterly Review 235. 1) Some consider restrictions from international trade agreements as overstated: There is no real empirical analysis of the impact of trade agreements restrictions, but anecdotal evidence suggests they are blatantly ignored (Dunoff 2009). On this point of view see for example: (Dunoff 2009). Lang Andrew T.F. 2007. Re-thinking Trade and Human Rights. Journal of International and Comparative Law. 15 TUL: 335,349. Wolfe, Robert. 2005. See you in Geneva? Legal (Mis) Representations of the Trading System. European Journal of International Relations 11, 339. Evenett, Simon and Bernard Hoekman. 2005. International Cooperation and the Reform of Public Procurement Policies. 15

World Bank Policy Research Working Paper 3720, World Bank, Trade Team (September). Washington: World Bank. , 2) Others consider restrictions from international trade agreements to be underestimated: WTO sanctioning methods are effective. Selective procurement even if used for social, economic or policy considerations violates WTO agreements (McCrudden 2007). But only for those who signed the GPA! On this point of view see for example: Hoekman Bernard. 1998. Using International Institutions to Improve Public Procurement. The World Bank Research Observer. voL 13. No. 2 (August), pp. 24969. The International Bank for Reconstruction and Development and the World Bank. Washington: World Bank. (Available under http://wbro.oxfordjournals.org/cgi/content /abstract/13/2/249) (McCrudden 2007) to the extent that he suggests using contracts as a bypass to policy restrictions in international trade agreements. 3) It is necessary to distinguish the WTO approach from the EC approach. WTO restricts (to a certain extent) procurement linkages while the EC promotes them (and requires them) but then regulates them in more detail, therefore taking away some regulatory flexibility. (Arrowsmith 2009) On restrictions coming from WTO: To use discriminatory procurement in your own territory:

(Dunoff 2009, p 1046) Under contemporary trade law, states generally are not permitted to facially discriminate against foreign goods, whether the state is acting as a regulator or as a purchaser. International trade law treats [] measures such as those that promote environmental

protection, labour conditions, and other domestic social objectives, quite differently a) WTO is concerned with nondiscrimination against like products. One could argue that social, environmental or gender sensitive products are not like products. b) Or that they may fall into GATTs general exemptions under GATT XX (to protect public morals, animal, human or plant life and the conservation of resources etc.) dispute panels have shown to be supportive of trade restrictive measures that protect human safety and natural resources. See: Charnovitz, Steve. 1998. The Moral Exception in Trade Policy. Virginia Journal of International Law, 38 689 745. Charnovitz, Steve. 2007. The WTOs Environmental Progress, Journal of International Economic Law 10, 685. Horn, Henrik and Mavroidis, Petros C. 2008. The Permissible Reach of National Environmental Policies, Journal of. World Trade 42: 1107. Diebold, Nicolas D. 2008. The Morals and Order Exceptions in WTO Law: Balancing the Toothless Tiger and the Undermining Mole. Journal of International Economic Law 11: 43.

from developing countries is another possibility. See: UNCTAD - UN Conference on Trade and Development. Generalized System of Preferences List of Beneficiaries. UNCTAD/ITCD/TSB/Misc.62/Rev.3. Date of publication: 01/02/08. Available under: (http://www.unctad.org/en/docs/itcdts bmisc62rev3_en.pdf accessed on Sept 24 2009)

The case for multilateral agreements on procurement is not clear and lacks basic evidence. Evennett proposes that a well implemented procurement reform could reduce state expenditure by about 10%, ultimately freeing up aid. See: (Evennett and Hoekman 2005)

2. Procurement and Aid: the conditionality / tied aid discussion

The literature on aid effectiveness and on tied aid is by now quite voluminous. I have included here some of the references I have found most relevant in regards to the specific issue of procurement, but have not included more general references to the issue of aid effectiveness or tied aid. See: OECD. 2005. Harmonising Donor Practices for Effective Aid Delivery Volume 3: Strengthening Procurement Practices in Developing Countries (with the Measurement tool methodology). Paris: OECD. http://www.oecd.org/dataoecd/12/1 4/34336126.pdf Grindle, Merilee. 2004. Good Enough Governance: Poverty Reduction and Reform in Developing Countries. Governance, Vol. 17 No. 4, pp. 525 548.

To use discriminatory procurement abroad: c) It is more clear how WTO restrictions would apply to the regulating host country ( contract giver) than to the country regulating goods and services located outside their territories (Dunoff p 1049) d) The use of the Enabling Clause that authorizes developed states to extend preferential tariff treatment (General System of Preferences -GSP) to goods

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(Watermeyer, Ron 2004) Wittig, Wayne. (no date). Building Value through Public Procurement: A Focus on Africa. International Trade centre. Available under http://www.aidharmonization.org/dow nload/212146/G_procurement_Africa n_countries_review.pdf (Emphasis on South Africa, Kenya,. Uganda and Guinea supporting donor driven reforms) Tyers, Rodney; Tony Voutas and Prue Phillips. 1986. Sectoral Specialization in Aid and Procurement for Aid. Effects on Efficiency of Foreign Assistance. Working Paper 86/2. National Centre for Development Studies, Australian National University. Old but interesting angle on inefficiency of tied aid regarding procurement. I wonder if similar papers exist along these lines for other agencies. Bagachwa, Mboya; Godwin Mjema; Joseph Shitundu and Samuel Wangwe. 1998. A study of Aid Effectiveness. The Case of Danish Aid in Tanzania. Economic Research Bureau, Economic Research Foundation in collaboration with the Centre for Development Research, Copenhagen. Piccioto, Robert. 2006. Development Effectiveness at the Country Level. Discussion Paper 8. German Development Institute. OECD. 2006. The Development Effectiveness of Food Aid. Does Tying matter?. Paris: OECD. Very specific but includes discussion on cash or in kind. Helpful for the issue of procurement behind the latter. Rogerson, Andrew, Adrian Hewitt and David Waldenberg. 2004. The International Aid System 2005-2010: Forces For and Against Change. ODI. Available under http://www.aidharmonization.org/dow nload/236280/aid_system_rogerson_ Aid_Effec.pdf

For some authors, donor policies on procurement reform have not been effective as: They do not rely on local realities but on meeting international standards Country Systems strategy is well targeted but not well managed: links to liberalisations goals in content and in the benchmarks it uses (OECD-DAC) Follow up on untied aid is not as significant

On this see for example: McDonald, Olivia. 2008. Buying Power. Aid, Governance and Public Procurement. (February). Christian Aid. (With extensive references to Ghana). Chinnock, J. and S. Collinson. 1999. Purchasing Power - Aid Untying, targeted procurement and poverty reduction. London: Action Aid.

3. Procurement Reform
The literature on Procurement reform is voluminous and has changed through time. At the beginning it focused more on legal arrangements and law reform; more recently it has focused on the management aspects of procurement and the tendency is to reinforce procurement as a business process within government. The selection here focuses on the points of view most relevant to the question of procurement and development from the perspective of aid agencies, donors and IFIs. OECD- DAC. 2003. International Benchmarks and Standards for public Procurement Systems. Session 2 : Priorities, benchmarks and Standards for Good Procurement. Conference Document. OECD/DAC World Bank Roundtable, Paris, 22-23 January. Available at: http://www.oecd.org/dataoecd/35/7/248 8588.pdf (accessed Sept 24 2009). PEFA Secretariat. 2003. Assessing Public Expenditure, Procurement and Financial Accountability. (April) . This study,

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prepared by the PEFA Secretariat, is intended to help facilitate the development of a more coordinated and effective approach to assessing and strengthening public expenditure, procurement and financial accountability systems. Available under http://www.aidharmonization.org/downloa d/229044/PEFA.pdf Hunja, R. 2001. Obstacles to Public Procurement Reform in Developing Countries. Washington: World Bank. Available under http://www.wto.org/english/tratop_e/gpro c_e/wkshop_tanz_jan03/hunja2a2_e. doc What evidence is there to inform reform strategies and international rule making? (Simon Evennett et al 2005, p 7, 8) Available data on the relative importance of aid flows as share of government expenditures suggest that aid finances a significant share of total purchases of goods and services by developing country governments (p. 7) Evidence indicates that state procurement markets of much of the developing world are NOT big enough to be attractive: e.g. on size, on how much USTR has complained about discriminatory practices (p 8).

or identified best practices, but rarely on the actual impact of those changes and reforms in the markets and societies where they apply. They stop at the output level (reforms issued) and rarely deal with the outcomes. In this section I include some of the issues raised on this topic. In general, there seems to be a deficit of good empirical data and analysis on procurement reform, its performance or its impact on development or the empirical grounds for procurement policy decisions. Where they exist, most of them refer rather to trade policy related aspects See for example: (Dunoff 2007) (Evennett and Hoekman 2005, p 10, 14) OECD. 2008. Compendium of Country Examples and Lessons in Applying the Procurement Assessment Methodology. August 27. Paris: OECD. This report presents the experiences and the lessons learned by 22 volunteer partner countries in Africa, Latin America and Asia related to the application of the Methodology for the Assessment of National Procurement Systems. http://www.oecd.org/dataoecd/60/2 0/41194898.pdf. See Page 40 and Box 5.1 on that page for the SoutAfrican case as one of the few exceptions.

(Evennett and Hoekman 2005)

D. EVALUATION OF PROCUREMENT POLICIES

AND EMPIRICAL RESEARCH

Perhaps one of the greatest problems found in the literature is the absence of empirical analysis and data on the actual impact of procurement reform, and of procurement in development targets. This makes the argument of procurement as a policy tool more difficult than or at least just as difficult as its critique. The instruments to measure procurement systems, processes and practices focus a lot on institutional arrangements, compliance with certain laws and standards, fulfilment of certain criteria 18

Of the few cross country assessments of procurement performance is the WEFs Global Competitiveness Report. Question 12.5 of GCR 2009 asks: Do government procurement decisions foster technological innovation in your country? Up until 2001 previous reports used to include more questions on Procurement. World Economic Forum. 2009. Global Competitiveness Report. 2008-2009. Geneva: WEF. http://www.weforum.org/pdf/GCR09/

GCR20092010fullreport.pdf, accessed on September 25, 2009 Assessment of Reforms, Policies and Practices

There are some works detailing practical assessments of impact and case analysis: Lemke, Marian. 2003. The experience of Centralized Enforcement in Poland. In Public Procurement: The Continuing Revolution. Sue Arrowsmith, and Trybus, Martin, Eds. London: Kluwer Law International. This article is criticized by (Evenett and Hoekman 2005). Ebenshade, Jill. 2001. The social accountability contract: private Research Paper No. 1133234. Available at SSRN: http://ssrn.com/abstract=1133234 Natural Resources Institute. 2005. Contributions to rural development by local purchase and regional procurement of food. Report to European Commission. London: Natural Resources Institute. Tschirley, D. and A. M. Del Castillo. 2006. Local and regional food aid procurement: an assessment of experience in Africa and elements of good donor practice. Policy Synthesis for Cooperating USAID Offices and Country Missions. Michigan: Michigan State University.

monitoring from Los Angeles to the global apparel industry. Labour Studies Journal, pp. 98-120. ORourke, Dara. 2003. Outsourcing Regulation: Analyzing Nongovernmental Systems of Labor Standards and Monitoring. The Policy Studies Journal, Vol. 31, No. 1: 1-29. Schooner, Steven L.; Daniel I. Gordon, and Jessica L. Clark. 2008. Public Procurement Systems: Unpacking Stakeholder Aspirations and Expectations (May 8), GWU Law School Public Law Research Paper No. 1133234; GWU Legal Studies

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PART 2. POLICIES AND PRACTICES BY GOVERNMENTS AND AID AGENCIES (SELECTED)

This second part includes references to more practical and empirical literature including policy guidelines for procurement and development. In light of the terms of reference I have divided this part into two sections: one aiming at sources related to specific countries particularly those that are at the focus of Eurodads research effort. The second part focuses on aid agencies and MDBs.

I.

SOME LITERATURE AND RESOURCES ON PROCUREMENT AND DEVELOPMENT BY COUNTRY (Selected Countries)

Country Ghana

Literature and Sources McDonald, Olivia. 2008. Buying Power. Aid, Governance and Public Procurement. (February).Christian Aid Osei, B. 2004. The cost of aid tying to Ghana. African Economic Research Consortium. AERC research paper 144; Nairobi: AERC. Presentation on Procurement Reform in Ghana. Power Point presentation by the President of Ghana during the OECD/DACWorld Bank Roundtable which took place from January 22-23, 2003. Available under http://www.aidharmonization.org/ahwh/search/redir?item_id=353638&url=%2fdownload%2f2129 30%2fProcurement_Reform_Ghana.ppt Kwesi, Abbey-Sam (Ghana). 2005. Strengthening PFM and Procurement Systems in Ghana. Presentation during the Concurrent Session 3 on Public Financial Management and Procurement During the Paris High-Level Forum (March). Available under http://www.aidharmonization.org/ahwh/search/redir?item_id=414788&url=%2fdownload%2f2549 86%2fMrAbbeySam-Ghana.ppt Ghana Partnership Strategy Results Matrix -- Consultative Group Meeting for Ghana -- Accra, Ghana, November 7-8, 2005. Available under: http://www.aidharmonization.org/download/255659/Results_M atrix_Final_Nov_23.pdf Ghana CPAR 2004 World Bank http://www-

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wds.worldbank.org/external/default/main?pagePK=64193027 &piPK=64187937&theSitePK=523679&menuPK=64187510&s earchMenuPK=64187283&theSitePK=523679&entityID=00016 0016_20040521151137&searchMenuPK=64187283&theSiteP K=523679 Ghana PEFA assessment Report. Public Finance Management Performance Report and Performance Indicators. 2006 External Review of Public Financial Management - Volume II. June 2006 . http://wwwwds.worldbank.org/external/default/main?pagePK=64193027 &piPK=64187937&theSitePK=523679&menuPK=64187510&s earchMenuPK=64187283&theSitePK=523679&entityID=00011 2742_20061101095320&searchMenuPK=64187283&theSiteP K=523679 Namibia Gwari, C and Shikongo, J. 2005. Black Economic Empowerment (BEE) Policy a Tool for Small to Medium size Enterprises development in Namibia. Windhoek: Joint Consultative Council and Friedrich Ebert Stiftung. MCA- Namibias Economic Rate of Return (results) Project Spreadsheets http://www.mcc.gov/mcc/panda/activities/err/err-countries/errnamibia.shtml Mozambique Frantz, Brian (PPC/DCO) and Komich, Carla (AFR/DP). 2003. A Donor Coordination Assessment for USAID/Mozambique. January 31.. Concept paper which analyzes and assesses USAIDs donor coordination efforts in Mozambique. http://www.aidharmonization.org/download/212336/swap280. pdf (Note: paper does not deal much with procurement case in point) Mozambique - Review of the Program Aid Partners (PAP) Performance in 2005 and PAPs Performance Assessment Framework (PAF) Matrix Targets for 2006 (Final Report April 2006) Available under http://www.aidharmonization.org/download/256327/PAPsPAFF inalReport.pdf Mozambique PEFA Assessment Report. Avaliao da Gesto de Finanas Pblicas em Moambique 2006: Aplicao de Metologia PEFA Despesa Pblica e Responsabilidade Financeira. February 2008. http://www.pap.org.mz/doc_ref_rc_2008.htm Current status of PFM systems & processes, overview of reforms and perspectives for 2006. SAL and ODI. March 2006. Report based on PEFA methodology. 21

http://ec.europa.eu/europeaid/what/economic-support/publicfinance/documents/mozamb_final_report_en.pdf UNDP ADR Report for Mozambique: http://www.undp.org/eo/documents/ADR/ADR_Reports/ADRMozambique.pdf Liberia Ecuador Main web site for the GEMAP (Governance and Economic Management Assistance Programme for Liberia) agreement: www.gemapliberia.org. UNDPs ADR Report for Ecuador. Evaluation Office, October 2008 http://www.undp.org/eo/documents/ADR/ADR_Reports/ADR_Ec uador.pdf Rizki Sadikin, Susy. 2006. Achieving Sustainable Development through Public Procurement in Indonesia. What Is The Priority: Environment, Social or Economy Aspect? Third International Public Procurement Conference, 28 - 30 (August). Amsterdam, the Netherlands. Rahardjo, Argus. 2003. Procurement Mainstreaming Process in Indonesia: Mainstreaming Procurement as a Strategic Aid Management. Paris: OECD/DAC. Available under http://www.aidharmonization.org/download/213271/PROCURE MENT_MAINSTREAMING_PROCESS_IN_INDONESIA.pdf. Presentation ate the OECD/DAC World Bank Roundtable. Indonesia CPAR- 2001 World Bank. http://wwwwds.worldbank.org/external/default/main?pagePK=64193027 &piPK=64187937&theSitePK=523679&menuPK=64187510&s earchMenuPK=64187283&theSitePK=523679&entityID=00009 4946_01041707211320&searchMenuPK=64187283&theSiteP K=523679 Bangladesh Lovei, Laszlo and Alastair McKennie. 2000. The costs of Corruption for the poor. With some examples from Bangladesh and the Ukraine and others in SEA and CEA. World Bank Mimeo quoted in Evenett et al (2005). Available in Public Policy for the Private Sector. Note Number 207. April 2000. World Bank Group. Private Sector and Infrastructure Network. Available under http://rru.worldbank.org/documents/publicpolicyjournal/207lov ei.pdf Fazlul Karim, Akm. 2005. Bangladesh Experience - Public Financial Management and Procurement. Presentation during the Paris High-Level Forum (March). Available under http://www.aidharmonization.org/ahwh/search/redir?item_id=414779&url=%2fdownload%2f2549 22

Indonesia

80%2fKarim-PFM.ppt Bangladesh CPAR 2002 World Bank: http://wwwwds.worldbank.org/external/default/main?pagePK=64193027 &piPK=64187937&theSitePK=523679&menuPK=64187510&s earchMenuPK=64187283&theSitePK=523679&entityID=00009 4946_02052904073067&searchMenuPK=64187283&theSiteP K=523679 UNDPs ADR Report for Bangladesh1 http://www.undp.org/eo/documents/ADR/ADR_Reports/ADR_B angladesh.pdf

Nepal

Nepal CPAR 2002 World Bank http://wwwwds.worldbank.org/external/default/main?pagePK=64193027 &piPK=64187937&theSitePK=523679&menuPK=64187510&s earchMenuPK=64187283&theSitePK=523679&entityID=00009 4946_02043004023166&searchMenuPK=64187283&theSiteP K=523679 PEFA Assessment Report. PEFA An Assessment of the Public Financial Management Performance Measurement Framework (As of FY 2005/06). February 2008. http://siteresources.worldbank.org/INTNEPAL/Resources/Nepal_ PEFA_(FY_2005-06).pdf

1 Note that the ADRs tend not to mention procurement. In contrast, some of the Aid Agencies reports, which aim at reporting under the aid effectiveness and harmonization agenda, do include data on procurement ( see next section).

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OTHER COUNTRIES
South Africa: Caron, David. 2002. The Structure and Pathologies of Local Selective Procurement Ordinances: A study of the Apartheid-Era South Africa Ordinances. University of California Public Law Research Paper 101. Rogerson, Christian. 2004. Pro-poor local economic development in South Africa: The application of public procurement. Urban Forum. Volume 15, Number 2 (April). Ashley, Caroline; Gareth Haysom; Clive Poultney; Douglas McNab and Adrienne Harris. 2005. How to? Tips and tools for South African tourism companies on local procurement, products and partnerships. Brief 1: Boosting procurement from local businesses. (September). ODI and Business Linkages in Tourism. http://www.capetown.gov.za/en/touris m/Documents/Responsible%20Tourism/ Tourism_how_to_boost_procurement.pd f. Czech Republic: Mardas, Dimitri and N. Varsakelis.2000. Public Procurement Policy and the Czech Industry. International Advances in Economic Research Volume 6.

Ghana: Verhage, Rob, Johan van de Gronden, Kofi Awanyo and Samuel Boateng. 2002. Procurement Reform in the Ghana Health Sector. Journal of Public procurement, Vol. 2, Issue 2, pages 261-268.

Philippines: Thornton, N. 2006. What is required to deliver External Assistance through Country Systems? Procurement Reform in the Philippines. Manila: 2006 Asian regional forum on Aid Effectiveness. (http://www.aideffectiveness.org/imag es/b/b4/Philippines-2006-AsiaForumPHI-Procurement.pdf).

China: Wang, Ping 2009. Chinas accession to the WTOs GPA: domestic challenges and prospects in the negotiation. Briefing Series issue 48 ( March). Includes a reference to Chinas use of Gov proc as tool, plus limits of helpfulness of GPA.

Africa in General: Tschirley, D. and A. M. del Castillo. 2006. Local and regional food aid procurement: an assessment of experience in Africa and elements of good donor practice. Policy Synthesis for Cooperating USAID Offices and Country Missions. Michigan: Michigan State University.

Nigeria: Ekpenkhio, Sam. 2003. Public Procurement Reforms: the Nigerian Experience. Paper presented to the joint WTO-World Bank Regional Workshop on Procurement Reforms and Transparency in Government Procurement for Anglophone African Countries in Tanzania On 16th January, 2003.

United States: Tschirley, D. 2008. Local and regional food aid procurement and the U.S. Farm Bill. Presentation at MSU Brown Bag, June 12, 2008 www.aec.msu.edu/fs2/outreach/LRPJune08BB-MSU.pdf - presentation; includes comparison with African countries

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II. POLICIES AND PRACTICES BY AID AGENCIES

GENERAL
This section includes general documents that relate to the initiatives, tools and guidelines currently used by aid agencies.

OECD (2008a) The Arusha Statement of the OECD/DAC Joint Venture on Procurement. Paris: OECD. (www.oecd.org/dataoecd/46/60/404 84797.pdf).

PEFA Assessments
The Public Expenditure and Financial Accountability (PEFA) Program, started in December, 2001, and has been jointly financed by the World Bank's Development Grant Facility (DGF), the European Commission (EC), the UK's Department for International Development (DFID), the Swiss State Secretariat for Economic Affairs (SECO), the Royal Norwegian Ministry of Foreign Affairs, the French Ministry of Foreign Affairs and the International Monetary Fund (IMF). A Steering Committee, comprising members of these agencies, is managing the Program. A Secretariat implements the PEFA work and is located in the World Bank offices in Washington, DC. See more information under http://www.pefa.org/about_pefamn.php

Public Financial Management Reform

Carole Pretorius and Nico Pretorius. Review of Public Financial Management reform Literature: January 1, 2009. Evaluation Report 698. DFID http://www.dfid.gov.uk/Documents/publica tions/evaluation/review-pub-finan-mgmtreform-lit.pdf Good overview of public financial reform issues including procurement reform and assessment.

OECD. 2008 Survey on Monitoring the Paris Declaration: Making Aid More Effective by 2010 http://www.oecd.org/dataoecd/58/4 1/41202121.pdf OECD DAC (2008b) Promoting local and regional procurement in developing countries DCD/DAC (2008)21, Paris. OECD, 2008. Compendium of Country Examples and Lessons in Applying the Procurement Assessment Methodology. August 27, 2008. This report presents the experiences and the lessons learned by 22 volunteer partner countries in Africa, Latin America and Asia related to the application of the Methodology for the Assessment of National Procurement Systems. http://www.oecd.org/dataoecd/60/2 0/41194898.pdf Clay, Edward J., Matthew Geddes, Luisa Natali and Dirk Willem te Velde. Thematic Study, The Developmental Effectiveness of Untied Aid: Evaluation of the Implementation of the Paris Declaration and of the 2001 DAC Recommendation on Untying ODA To The LDCs, Phase I Report. Overseas Development Initiative. Copenhagen, December 2008 http://www.oecd.org/dataoecd/5/22 /41537529.pdf.

OECD/DAC Joint Venture on Procurement

OCED, Policy Brief Policy Brief: Managing for Development Results. March 27, 2009.

Good overview on advances, include information on procurement per agency in: Australia, Canada, Denmark, Norway and Switzerland. McDonald, Olivia. Government procurement, development and World Bank conditionalities..G-24 Policy Brief No. 20. (No date). The paper questions

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the ability of the WB to use procurement for development. http://www.g24.org/pbno20.pdf

http://www.aidharmonization.org/ahwh/search/redir?item_id=352667&url=%2 fdownload%2f212296%2fProcurement_ha rmonization.ppt Strengthening Procurement Capacities in Developing Countries - Executive Summary Report. 2003. This is the follow-up Executive Summary report for the document entitled: Strengthening Procurement Capacities in Developing Countries. The document is derived from information discussed during the joint DAC World Bank Roundtable held in Paris on January, 22-23, 2003. Available under http://www.aidharmonization.org/downloa d/213275/Strengthening_Procurement_Ca pacity_OECDDAC_World_Bank_Rountable.pdf Mainstreaming the Procurement Function into the Public Expenditure Policy and Effectiveness Dialogue. 2003. The purpose of this note is to: define what mainstreaming procurement actually means in the broader context of the current public expenditure effectiveness debate, understand why it is so important the benefits from doing it well; the costs of poor procurement, discuss the main challenges in mainstreaming procurement, and develop a number of practical next steps aimed at developing ways to achieve this objective. Document presented at the joint DAC World Bank Roundtable held in Paris on January, 22-23, 2003. Available under: http://www.aidharmonization.org/downloa d/213263/MAINSTREAMING_THE_PROCU REMENT_FUNCTION_INTO_THE_PUBLIC.pdf Meeting of Heads of Procurement (selected):

DOCUMENTS RELATED TO AID HARMONIZATION EFFORTS AND THE JOINT VENTURE ON PROCUREMENT
Master Procurement Documents This Master Document for Procurement of Goods has been prepared by the Multilateral Development Banks and International Financing Institutions to be used as a model by these organizations for issuing new and better harmonized bidding documents for each individual institution. The document reflects what are considered best practices, and is intended to be followed, insofar as possible, while allowing for institutional and member country considerations. (Preamble to all) Additional note: the master documents tend to establish the absence of domestic preferences as the operating assumption (Section E-35) Generic Master Document. November 2007. Available under http://www.aidharmonization.org/dow nload/256991/GenericMPD-1107.pdf Master Document for Procurement of Goods. March 2007. Available under http://www.aidharmonization.org/dow nload/256831/MasterWorks-4-07.pdf Master Document for Procurement of Works. July 2007. Available under http://www.aidharmonization.org/dow nload/256851/MasterWorks-407new-gcs17.pdf.pdf

Harmonization Agenda and Activities (Harmonization Procurement). (No date). Power Point presentation with a broad overview on Harmonization procurement efforts, activities, initiatives and products. Available under: 26

Report on Progress by Heads of Procurement. February 2007. Harmonisation of Public Procurement Policies and Practices of Public International Financial Institutions. Available under http://www.aidharmonization.org/dow

nload/256789/LondonProgressReport HOP-9.pdf MDBs-IFIs - Heads of Procurement Meeting - February 2006 . Heads of Procurement (HoP) Meeting (Precis of Minutes) - 14-16 February 2006, Manila, the Philippines. Available under http://www.aidharmonization.org/dow nload/256729/PrecisMinutesHoP.pdf Heads of Procurement Meeting Decisions on Buy Local policies (No date) http://siteresources.worldbank.org/PR OCUREMENT/Resources/localproc.pdf

Finally, in regards to Aid Agencies and IFIs Procurement policies, it is important to distinguish between: a) The application of social, economic, environmental etc. objectives to their own procurement processes b) The development/support of projects that use procurement as a social/economic tool. In the table below I have included: procurement guidelines, procurement assessments when applicable and also procurement related projects.

DONOR World Bank

SOME BASIC REFERENCES Link to CPARs available: http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUR EMENT/0,,contentMDK:20108359~menuPK:84285~pagePK:84269 ~piPK:60001558~theSitePK:84266,00.html Policies and Guidelines including sector-specific instructions: http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUR EMENT/0,,contentMDK:50002392~menuPK:93977~pagePK:84269 ~piPK:60001558~theSitePK:84266,00.html OECD-DAC and World Bank. Harmonising Donor Practices for Effective Aid Delivery Volume 3: Strengthening Procurement Practices in Developing Countries. 2005. Paris: OECD. This is the compendium of the Good Practice Papers on Strengthening Procurement Capacities in Developing Countries produced within the Round Table initiative carried out during 2003 and 2004. http://www.oecd.org/dataoecd/12/14/34336126.pdf Country systems information: http://go.worldbank.org/JKNSMV0WF0

USAID

Syquia, Jose Luis C. 2007. Reforming Public Procurement in Emerging Market Countries. A USAIDs sponsored view on procurement reform. USAID. (May). USAID. http://www.fiscalreform.net/images/Files/procurement_final_07060 1.pdf USAID Policy for local costing (in country supply). ADS Chapter 317 Procurement under Fixed Amount Reimbursement Activities. http://www.usaid.gov/policy/ads/300/317.pdf

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 AIDAR (procurhttp://www.fiscalreform.net/images/Files/procurement_final _070601.pdfement) Regulations http://www.usaid.gov/policy/ads/300/aidar.pdf. They are applicable to USAID together with the FAR (Federal Acquisitions Regulations). Indicate special socioeconomic programmes. USAID Recovery Act Plan. USAID Recovery Act Plan. Describes both broad USAID Recovery Act plans as well as our USAID program specific plans for use of these Recovery Act funds. http://www.usaid.gov/recovery/2009/05/15/plan/USAID_Recove ry_Act_Plan.pdf MCA (Millennium Challenge Account) MCA Procurement Guidance Papers: http://www.mcc.gov/mcc/procurement/ppg/index.shtml and General Policy: http://www.mcc.gov/mcc/procurement/index.shtml MCA Impact evaluations http://www.mcc.gov/mcc/panda/activities/impactevaluation/index. shtml MCA Fact sheet on procurement for large works http://www.mcc.gov/mcc/bm.doc/factsheet-082909procurement.pdf GTZ Procurement Fact sheet 2007. GTZs Perspective on Procurement and development. http://www.gtz.de/de/dokumente/gtz2007-enfactsheet-corruption-procurement.pdf DANIDA. See Annual Report 2008 with results on procurement policy and tied aid From Goals to Results in Danish Development Assistance 2008: http://amg.um.dk/NR/rdonlyres/1DA3EC95E388-4F2F-85BAEC59001C8057/0/Fra_maal_til_resultater_GB_WEB.pdf The ADB Procurement Guidelines of 2004 were subject to revision in 2005 and were re-issued in 2006 the document summarizing the revision can be found here: http://www.adb.org/Procurement/review-policy.asp and the final guidelines here: http://www.adb.org/Documents/Policies/procurementguidelines/default.asp Procurement modalities enabling buy local procedures: http://www.adb.org/documents/guidelines/procurement/proc_other forms.asp ADP Procurement Statistics ( March 2008 issue) includes local procurement statistics 28

Denmark, Sweden or NL

ADB

http://www.adb.org/Documents/Others/QPS/2008/q12008.asp The Governance Brief. A Quarterly Publication, Governance and Regional Cooperation Division Regional and Sustainable Development Department. Issue 3 (no date). Discusses ADBs procurement policy including the use of procurement for development purposes. http://www.adb.org/documents/periodicals/gb/GovernanceBrief0 3.pdf IADB IADB Project to enable SME development through procurement in Chile. (Power point presentation by Fredy Betancurt, presented at the V Conferencia Anual de las Compras Gubernamentales en las Amricas, Mxico D.F September 2-3 2009. http://portal.funcionpublica.gob.mx:8080/wb3/work/sites/SFP/res ources/LocalContent/2115/7/panel_3_1_fredy_betancurt.pdf IADB Project to enable SME development through procurement in Argentina. (Power point presentation by Juan C Lpez, presented at the V Conferencia Annual de las Compras Gubernamentales en las Amricas, Mxico D.F September 2-3 2009. http://portal.funcionpublica.gob.mx:8080/wb3/work/sites/SFP/res ources/LocalContent/2115/7/panel_3_2_juan_c_lopez.pdf Project to support the use of country systems: http://www.iadb.org/projects/project.cfm?id=RG-T1746&lang=en Enterprise Research Institute for Latin America. From Intervention To Empowerment: A New Approach to Assisting SMEs in Latin America Regulation, Procurement, and Dispute Resolution. (No date) This paper examines procurement as a tool to promote SMEs and whether procurement has any role in Bank programs to encourage SME development. http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=55760 3 Inter-American Development Bank. Donors Committee. MIF/GN-7814. 2003. Evaluation of MIF Projects Market Functioning: Promotion of Competition and Consumer Protection Office of Evaluation and Oversight, OVE (December). Washington, D.C.: Inter-American Development Bank. http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=36140 5 The Evaluation of the New Lending Framework, 2005-200. Office of Evaluation and Oversight, OVE Inter-American Development Bank. Washington, D.C. September 2008. http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=19251 98 IADB General Procurement Policy 29

http://www.iadb.org/aboutus/pi/op_501.cfm DFID On Procurement and aid effectiveness: http://www.dfid.gov.uk/Global-Issues/How-we-fightPoverty/Government/Public-Financial-Management-andAccountability/Aid-effectiveness-procurement1/ Joint Procurement Policy of DFID and other members of the Nordic Group ( September 2009) http://amg.um.dk/NR/rdonlyres/33DC103E-DDAC-431E-82F1E608219BB52C/0/JPPGuideFinal090909.pdf DFID Evaluation documents: http://www.dfid.gov.uk/MediaRoom/Publications/Evaluation-studies/ Procurement Can Make It Happen: A DFID Commercial Strategy: Final Version. December 10, 2008. Sam Sharpe, Director of FCPD Document Number: 1867169 http://www.dfid.gov.uk/Documents/procurement/dfid-commstrategy-proc.pdf UNDP UNDPs Interagency Procurement Services Office Business Guide : http://www.iapso.org/supplying/business.asp UNDPs Procurement Guides can be fund under http://www.undp.org/procurement/ ( includes an environmental procurement guide) UNDP statistics on procurement by country of supply ( as of 2006): http://www.undp.org/procurement/documents/total%20procuremen t%20by%20country%20of%20supply.pdf CIDA CIDA Primer on Program-Based Approaches. August 5 2003. http://www.aidharmonization.org/download/237602/RADDABAC. pdf

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ANNEX: BIBLIOGRAPHY ( LIST IN ALPHABETICAL ORDER)

Note: this does not include Aid Agency or MDB Guideline documents in Part II, Section II.

Anderson, Robert D. and William E. Kovacic. 2009. Competition Policy and International Trade Liberalisation: Essential Complements to Ensure Good Performance in Public Procurement Markets. Public Procurement Law Review 18, Issue 2. Arrowsmith, Sue and Martin Trybus, Eds. 2003. Public Procurement: The Continuing Revolution. London: Kluwer Law International. Arrowsmith, Sue and Arwel, Davies, eds. 1998. Public Procurement: Global Revolution. London: Kluwer Law International. Arrowsmith, Sue and P. Kunzlik, eds. 2009. Social and Environmental Policies in EC Procurement Law. Cambridge: Cambridge University Press. Arrowsmith, Sue. 1995. Public Procurement as a Tool of Policy and the Impact of Market Liberalisation. 111 Law Quarterly Review 235. Ashley, Caroline; Gareth Haysom; Clive Poultney; Douglas McNab and Adrienne Harris. 2005. How to? Tips and tools for South African tourism companies on local procurement, products and partnerships. Brief 1: Boosting procurement from local businesses. (September). ODI and Business Linkages in Tourism. http://www.capetown.gov.za/en/tourism/Documents/Responsible%20Tourism/Tourism_ho w_to_boost_procurement.pdf. Bagachwa, Mboya; Godwin, Mjema; Joseph Shitundu and Samuel Wangwe. 1998. A study of Aid Effectiveness. The Case of Danish Aid in Tanzania. Economic Research Bureau, Economic Research Foundation in collaboration with the Centre for Development Research, Copenhagen. Betancurt, Fredy. 2009. Power point presentation. Presented at the V Conferencia Anual de las Compras Gubernamentales en las Amricas, Mxico D.F September 2-3.. http://portal.funcionpublica.gob.mx:8080/wb3/work/sites/SFP/resources/LocalContent/2 115/7/panel_3_1_fredy_betancurt.pdf Brack, Duncan. 2008. Controlling Illegal Logging Using Public Procurement Policy. Chatham House Briefing Paper. Energy, Environment and Development Programme. EEDP LOG BP 08/02 (June). Brammer, Steven and Helen Walker. 2007. Sustainable procurement practices in the public sector: An international comparative study. Working Paper Series 2007-16. University of Bath: School of Management. Burgi, M. 2007. Small and medium-sized enterprises and procurement law - European legal framework and German experiences. 16 Public Procurement Law Review 284. 31

Caron, David. 2002. The Structure and Pathologies of Local Selective Procurement Ordinances: A study of the Apartheid-Era South Africa Ordinances. University of California Public Law Research Paper 101. Catlaw,Thomas J..(No date) Socially Responsible Supply Management: Thinking Global in Local Government Purchasing during a Fiscal Crisis. Arizona State University. http://www.transformgov.org/files/whitepaper/4c_Innovating_with_Socially_Responsible_ Supply_Management_Tom_Catlaw.pdf Charnovitz, Steve. 1998. The Moral Exception in Trade Policy. Virginia Journal of International Law, 38 689745. Charnovitz, Steve. 2007. The WTOs Environmental Progress, Journal of International Economic Law 10, 685. Chinnock, J. and S. Collinson. 1999. Purchasing Power - Aid Untying, targeted procurement and poverty reduction. London: Action Aid. Coggburn, J. D and D. Rahm. 2005. Environmentally preferable purchasing: Who's doing it in the United States? Journal of Public Procurement, 5(1), 23-53. Cummings, G., R. E. Lloyd, Y. Qiao,, and Thai, K. V. 2006. State and local procurement preferences: A survey. Herndon, VA: National Institute of Government Purchasing. Daimith T. 1979. Regulation by Contract the New Prerogative. Current Legal Problems 41. Diebold, Nicolas D. 2008. The Morals and Order Exceptions in WTO Law: Balancing the Toothless Tiger and the Undermining Mole. Journal of International Economic Law 11: 43. Dunoff, Jeffrey L. 2009. Linking International Markets and Global Justice. Michigan Law Review Vol. 107 (April):1039. Ebenshade, Jill. 2001. The social accountability contract: private monitoring from Los Angeles to the global apparel industry. Labour Studies Journal, pp. 98-120. Ekpenkhio, Sam. 2003. Public Procurement Reforms: the Nigerian Experience. Paper presented to the joint WTO-World Bank Regional Workshop On Procurement Reforms and Transparency in Government Procurement For Anglophone African Countries In Tanzania On 16th January, 2003. Enterprise Research Institute for Latin America. From Intervention To Empowerment: A New Approach to Assisting SMEs in Latin America Regulation, Procurement, and Dispute Resolution. (No date). http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=557603 Evenett, Simon and Bernard Hoekman. 2005. International Cooperation and the Reform of Public Procurement Policies. World Bank Policy Research Working Paper 3720, World Bank, Trade Team (September). Washington: World Bank. Frantz, Brian (PPC/DCO) and Komich, Carla (AFR/DP). 2003. A Donor Coordination Assessment for USAID/Mozambique. January 31.. Concept paper which analyzes and assesses USAIDs donor coordination efforts in Mozambique. http://www.aidharmonization.org/download/212336/swap280.pdf

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Grindle, Merilee. 2004. Good Enough Governance: Poverty Reduction and Reform in Developing Countries. Governance, Vol. 17 No. 4, pp. 525548. Gwari, C and J. Shikongo, 2005. Black Economic Empowerment (BEE) Policy a Tool for Small to Medium size Enterprises development in Namibia. Windhoek: Joint Consultative Council and Friedrich Ebert Stiftung. Hatzis, N. 2009. The legality of SME development policies under EC procurement law. In Social and Environmental Policies in EC Procurement Law. Sue Arrowsmith and P. Kunzlik, eds. Cambridge: Cambridge University Press. Hoekman Bernard. 1998. Using International Institutions to Improve Public Procurement. The World Bank Research Observer. voL 13. no. 2 (August), pp. 249-69. The International Bank for Reconstruction and Development and The World Bank. Washington: World Bank. (available under http://wbro.oxfordjournals.org/cgi/content/abstract/13/2/249) Horn, Henrik and Mavroidis, Petros C. 2008. The Permissible Reach of National Environmental Policies, Journal of. World Trade 42: 1107. Hunja, R. 2001. Obstacles to Public Procurement Reform in Developing Countries. Washington: World Bank. Available under http://www.wto.org/english/tratop_e/gproc_e/wkshop_tanz_jan03/hunja2a2_e. doc ILO -International Labour Organisation. 2008. Labour Clauses in Public Contracts. International Labour Conference 97th Session. Kunzlik, P. 1998. Environmental Issues in International Procurement. , In Sue Arrowsmith, Sue and Arwel Davies, eds. Public Procurement Global Revolution. London: Kluwer Law International. Kwesi, Abbey-Sam (Ghana). 2005. Strengthening PFM And Procurement Systems In Ghana. Presentation during the Concurrent Session 3 on Public Financial Management and Procurement During the Paris High-Level Forum (March). Available under http://www.aidharmonization.org/ahwh/search/redir?item_id=414788&url=%2fdownload%2f254986%2fMrAbbeySamGhana.ppt Lang Andrew T.F. 2007. Re-thinking Trade and Human Rights. Journal of International and Comparative Law. 15 TUL: 335,349. Lemke, Marian. 2003. The experience of Centralized Enforcement in Poland. In Public Procurement: The Continuing Revolution. Sue Arrowsmith, and Trybus, Martin, Eds.. London: Kluwer Law International. Lovei, Laszlo and Alastair McKennie. 2000. The costs of Corruption for the poor. With some examples from Bangladesh and the Ukraine and others in SEA and CEA. World Bank Mimeo quoted in Evenett et al (2005). Also published in Public Policy for the Private Sector. Private Sector and Infrastructure Network .Note Number 207. April 2000. World Bank Group. Available under http://rru.worldbank.org/documents/publicpolicyjournal/207lovei.pdf Lpez, Juan C. 2009. Power point presentation. Presented at the V Conferencia Annual de las Compras Gubernamentales en las Amricas, Mxico D.F September 2-3.

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http://portal.funcionpublica.gob.mx:8080/wb3/work/sites/SFP/resources/LocalContent/2 115/7/panel_3_2_juan_c_lopez.pdf Lynn Jr., L. E. 2006. Public management: Old and new. New York: Routledge. Mardas, Dimitri. 2005. The Latest Enlargement of the EU and 'Buy National' Rules. The World Economy, Vol. 28, No. 11, (November) pp. 1633-1650. Available at SSRN: http://ssrn.com/abstract=857837 or DOI: 10.1111/j.1467-9701.2005.00750.x Matthews, D. 2005. Strategic public procurement in the public sector: A mask for financial and administrative policy. Journal of Public Procurement, 5(3), 388-399. McCrudden, Christopher. 2007. Buying social justice: Equality, government procurement, and legal change. New York: Oxford University Press. McCrudden, Christopher. 2007-a. Corporate social responsibility and public procurement. In Mcbarnet, Doreen, Aurora Voiculescu, and Tom Campbell, eds. The New Corporate Accountability: Corporate Social Responsibility and the Law. Cambridge: Cambridge University Press. McCrudden, Christopher. 2004. Using public procurement to achieve social outcomes. Natural Resources Forum, 28(4), 257-267. McDonald, Olivia. 2008. Buying Power. Aid, Governance and Public Procurement. (February).Christian Aid. McDonald, Olivia. Government procurement, development and World Bank conditionalities..G-24 Policy Brief No. 20. (No date).. http://www.g24.org/pbno20.pdf Nielsen, H.K. 1995. Public Procurement and International Labour Standards. Public Procurement Law Review (4) 94. Natural Resources Institute. 2005. Contributions to rural development by local purchase and regional procurement of food. Report to European Commission. London: Natural Resources Institute. ORourke, Dara. 2003. Outsourcing Regulation: Analyzing Nongovernmental Systems of Labor Standards and Monitoring. The Policy Studies Journal, Vol. 31, No. 1: 1-29. OECD Standards for Multinational Enterprises. Available under http://www.oecd.org/dataoecd/56/36/1922428.pdf) OECD. 2003. The environmental performance of public procurement: Issues of policy coherence. Paris: OECD. OECD -Organisation for Economic Cooperation and Development. 2003. The environmental performance of public procurement: Issues of policy coherence. Paris: OECD. OECD- DAC. 2003. International Benchmarks and Standards for public Procurement Systems. Session 2: Priorities, benchmarks and Standards for Good Procurement. Conference Document. OECD/DAC World Bank Roundtable, Paris, 22-23 January. Available at: http://www.oecd.org/dataoecd/35/7/2488588.pdf (accessed Sept 24 2009)

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OECD. 2005. Harmonising Donor Practices for Effective Aid Delivery Volume 3: Strengthening Procurement Practices in Developing Countries (with the Measurement tool methodology). Paris: OECD. http://www.oecd.org/dataoecd/12/14/34336126.pdf OECD. 2006. The Development Effectiveness of Food Aid. Does Tying matter? Paris: OECD. OECD. 2007. Integrity in Public Procurement - Good Practice from A to Z . (May). Paris: OECD. OECD. 2008. Compendium of Country Examples and Lessons in Applying the Procurement Assessment Methodology. August 27. Paris: OECD. OECD Principles for Integrity in Public Procurement. April 2009. Paris: OECD Osei, B. 2004. The cost of aid tying to Ghana. African Economic Research Consortium. AERC research paper 144; Nairobi: AERC. PEFA Secretariat. 2003. Assessing Public Expenditure, Procurement and Financial Accountability. (April). Available under http://www.aidharmonization.org/download/229044/PEFA.pdf Piccioto, Robert. 2006. Development Effectiveness at the Country Level. Discussion Paper 8. German Development Institute. Rahardjo, Argus. 2003. Procurement Mainstreaming Process in Indonesia: Mainstreaming Procurement as a Strategic Aid Management. Paris: OECD/DAC. Available under http://www.aidharmonization.org/download/213271/PROCUREMENT_MAINSTREAMING _PROCESS_IN_INDONESIA.pdf Rizki Sadikin, Susy. 2006. Achieving Sustainable Development through Public Procurement in Indonesia. What Is The Priority: Environment, Social or Economy Aspect? Third International Public Procurement Conference, 28 - 30 (August). Amsterdam, the Netherlands. Rogerson, Andrew; Adrian Hewitt and David Waldenberg. 2004. The International Aid System 2005-2010: Forces For and Against Change. ODI. http://www.aidharmonization.org/download/236280/aid_system_rogerson_Aid_Effec.pd f Rogerson, Christian. 2004. Pro-poor local economic development in South Africa: The application of public procurement. Urban Forum. Volume 15, Number 2 (April). Rolfstam, Max and Leif Hommen (University of Lund) with Jakob Edler (Fraunhofer ISI, Karlsruhe) in cooperation with Lena Tsipouri (University of Athens; CERES, Athens) John Rigby (PREST, Manchester). Literature Review: Innovation and Public Procurement. In Innovation and Public Procurement. Review of Issues at Stake ( No date). Available under ftp://ftp.cordis.europa.eu/pub/innovation-policy/studies/chapter2_literature_review.pdf Schooner, Steven L. Daniel I. Gordon, and Jessica L. Clark. 2008. Public Procurement Systems: Unpacking Stakeholder Aspirations and Expectations (May 8), GWU Law School Public Law Research Paper No. 1133234; GWU Legal Studies Research Paper No. 1133234. Available at SSRN: http://ssrn.com/abstract=1133234 Shezi, S. 1998. Public Procurement as an Instrument of Government Policy. Paper delivered to the 9th International Public Procurement Association Conference, Copenhagen, Denmark. June 1998. Available online: http://www.pwdprocure.co.za/orientation.html 35

Steurer, Reinhard, Gerald Berger, Astrid Konrad, and Andre Martinuzzi. 2007. Sustainable Public Procurement in EU Member States: Overview of government initiatives and selected cases. Final Report to the EU High-Level Group on CSR, RIMAS -Research Institute for Managing Sustainability.

Syquia, Jose Luis C. 2007. Reforming Public Procurement in Emerging Market Countries. A USAIDs sponsored view on procurement reform. USAID. (May). USAID. http://www.fiscalreform.net/images/Files/procurement_final_070601.pdf Thornton, N. 2006. What is Required to Deliver External Assistance Through Country Systems? Procurement Reform in the Philippines. Manila: 2006 Asian regional forum on Aid Effectiveness. (http://www.aideffectiveness.org/images/b/b4/Philippines-2006AsiaForum-PHI-Procurement.pdf). Transparency Internationals recommendations for the EU debarment system, 2006. http://www.transparency.org/global_priorities/public_contracting/key_sectors/special_to pis Trepte,P. 2004. Regulating Procurement: Understanding the Ends and Means of Public procurement Regulation. Oxford: Oxford University Press. Tschirley, D. and A. M. Del Castillo. 2006. Local and regional food aid procurement: an assessment of experience in Africa and elements of good donor practice. Policy Synthesis for Cooperating USAID Offices and Country Missions. Michigan: Michigan State University. Tschirley, D. 2008. Local and regional food aid procurement and the U.S. Farm Bill. Presentation at MSU Brown Bag, June 12, 2008 www.aec.msu.edu/fs2/outreach/LRPJune08BB-MSU.pdf - presentation; includes comparison with African countries Tyers, Rodney; Tony Voutas and Prue Phillips. 1986. Sectoral Specialization in Aid and Procurement for Aid. Effects on Efficiency of Foreign Assistance. Working Paper 86/2. National Centre for Development Studies, Australian National University. UNCTAD. UN Conference on Trade and Development Generalized System of Preferences List of Beneficiaries. UNCTAD/ITCD/TSB/Misc.62/Rev.3. Date of publication: 01/02/08 available at: (http://www.unctad.org/en/docs/itcdtsbmisc62rev3_en.pdf accessed on Sept 24 2009) USAID. Office of the Inspector General for the Millenium Challenge Corporation. Audit Of Compliance With Procurement Requirements By The Millennium Challenge Corporation And Its Compact Countries. Audit Report No. M-000-008-02-P March 3, 2008 Opinions on contractor vetting at MCC report from the Auditor General with focus on operations in Ghana, Armenia and Honduras http://www.usaid.gov/oig/public/mcc/m-000-08-002p.pdf van Buiren, Shirley. 2007. National Contact Points and the Handling of Complaints Is the functional equivalency gap widening? OECD Watch. (Available under http://www. oecdwatch.org/cases/Case_102/376/at_download/file)

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Verhage, Rob, Johan van de Gronden, Kofi Awanyo and Samuel Boateng. 2002. Procurement Reform in the Ghana Health Sector. Journal of Public procurement, Vol. 2, Issue 2, pages 261-268. Wang, Ping 2009. Chinas accession to the WTOs GPA: domestic challenges and prospects in the negotiation. Briefing Series issue 48 (March). Ware, G; Shaun Mos, and Edgardo Campos. 2007. Corruption in Public Procurement: A perennial Challenge. In The Many Faces of Corruption. Tracking Vulnerabilities at the Sector Level. Edgardo Campos and Pradhan, Sanjay. Chapter 9, p295-334. Watermeyer, Ron. 2000. The Use of Targeted Procurement as an Instrument of Poverty Alleviation and Job Creation in Infrastructure Projects. Public Procurement Law Review 2, 5, 226-50. Watermeyer, Ron. 2004. Facilitating Sustainable Development through Public and Donor Procurement Regimes: Tools and Techniques, Public Procurement Law Review 30-55. Wiehen, Michael and Olaya, Juanita. 2006. How to Reduce Corruption in Public Procurement: The Fundamentals. In Handbook for Curbing Corruption in Public Procurement, Part I, pp. 13-105. Berlin: Transparency International. Wilsher, D. 2009. Reconciling national autonomy and trade integration in the context of eco-labelling. In Social and Environmental Policies in EC Procurement Law. Sue Arrowsmith and P. Kunzlik, eds., Chapter 10. Cambridge: Cambridge University Press. Wittig, Wayne. (no date) . Building Value Through Public Procurement: A Focus on Africa. International Trade centre. Available under http://www.aidharmonization.org/download/212146/G_procurement_African_countries_r eview.pdf Wolfe, Robert. 2005. See you in Geneva? Legal (Mis) Representations of the Trading System. European Journal of International Relations 11, 339. World Economic Forum. 2009. Global Competitiveness Report. 2008-2009. Geneva: WEF. http://www.weforum.org/pdf/GCR09/GCR20092010fullreport.pdf, accessed on September 25, 2009

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