UNPCDC Forumhttp://www.unpcdc.orgStrengthening Country Procurement Systems: Results and Opportunitieshttp://www.unpcdc.org/home/forum/oecd-dac-procurement-task-force/2012/1/strengthening-country-procurement-systems-results-and-opportunities.aspxStrengthening Country Procurement Systems: Results and Opportunities

The OECD DAC Procurement Taskforce publication -  Strengthening Country Procurement Systems: Results and Opportunities, resulted in some important messages as we consider how to continue to strengthen country systems and support effective institutions.  

The authors identified the following Key Messages and Future Work:

Analysis of the case studies and the country surveys resulted in key messages on improving efficiency and effectiveness of procurement capacity development and modernization work and recommendations for future work. The Task Force on Procurement received the strong endorsement of participants to continue to provide a forum for the sharing of knowledge and experiences and the building of new tools to support the strengthening of public procurement systems.  A summary of messages and recommendations follows:

·         Technical fixes alone do not lead to sustainable transformation of procurement systems. Procurement reforms are intimately linked to broader Public Sector reforms which are deeply political.  Recognition of this will drive increased examination of political economy issues to identify approaches that link procurement reform to wider governance reforms.

·         Procurement reforms occur in stages or waves.  Most countries begin by ensuring that basic laws and institutions are created that enable a country to maintain progress and consolidate gains while moving towards initiatives that increase efficiency and contribute to implementing policy, improved service delivery and private sector development.

·         The further strengthening of country procurement systems will require continued country commitment, ownership and leadership and support of donors.

·         Building human capacity has generally lagged behind and will benefit from the continued support of donors, including through increased reliance by donors on using country systems.

·         Regional initiatives and south/south cooperation continue to grow in importance.  They provide an effective means to share knowledge; to leverage buying power and expand access to markets.  

Recommendations include: new or improved tools; facilitating new/old regional networks; developing performance monitoring indicators; and continuing to push for donor coordination at the country level.

Doeas this resonate with your experience of country system reform?

]]>Fri, 20 Jan 2012 11:09:17 GMTA Practical Guide to Transforming Procurement Systemshttp://www.unpcdc.org/home/forum/oecd-dac-procurement-task-force/2011/12/a-practical-guide-to-transforming-procurement-systems.aspxStrengthening Country Procurement Systems: Results and Opportunities

The OECD DAC Procurement Task Force in 2011 commissioned:-

Strengthening Country Procurement Systems: Results and Opportunities

This was a retrospective review of progress, especially with regard to use of tools produced by the Procurement Task Force working group and impact of work at the country level.  The publication covers a survey of countries and highlights country examples that demonstrate reform and modernization, capacity development, performance monitoring and donor support in building systems and in using procurement systems.  A final chapter identifies key messages including recommendations for improving outcomes and seeking additional results.

This is an extremely valuable resource for strengthening procurement systems. The Authors summarize the lessons learned to improve the efficiency and effectiveness of capacity development efforts in countries choosing to work towards procurement modernization, as follows:

·         The OECD/DAC benchmarking tool, MAPS, has provided more than sixty countries with useful country specific information that has helped formulate a reform strategy or kick start additional change under an on-going process.

·         Human capacity development remains a key issue as the quality of every system depends on having qualified and knowledgeable people to manage and implement.

·         Decentralization presents challenges that affect a well functioning procurement system as capacity and skills are usually less developed when moving away from the center. 

·         Effective use of technology increases transparency, contributes to efficiency and provides information to stakeholders and managers that can be used to monitor and manage performance.

·         Reforms require resources, take time and require long term government commitment in order to bring about successful change.

·         The most successful procurement reform initiatives are country led and part of a broader public administration reform process which helps to ensure integration and prioritization of reforms.

·         The role of donors is evident in supporting reform initiatives and in providing advice and knowledge to countries, but lack of donor coordination and a reluctance to use country systems can have a negative impact on reform.

·         Stakeholders from civil society and from the private sector play an important role as drivers of change and overseeing results.

Are these lessons in line with your experience?

Can you apply them to country systems reforms that you are involved in?]]>Fri, 13 Jan 2012 17:21:30 GMTUsing Country Systems - Is it all or nothing?http://www.unpcdc.org/home/forum/oecd-dac-procurement-task-force/2011/12/using-country-systems-is-it-all-or-nothing.aspxBusan Outcome Document:–
Opportunities for Diagnosing and Capacity Development of Country Systems

The Busan High-level Forum HLF gathered around 3,000 participants from 160 countries representing governments and civil society between the 29 November and 1 December. The outcome document, the Busan Partnership Agreement for Effective Development Co-operation was signed by developed and developing nations, including in particular major countries providers of South-South cooperation, as well as civil society.

An important point is contained in the MAPS in 60 countries, Practical Guide for the Transformation of Public Procurement Systems at Busan.

Were you a participant at Busan, does this reflect the commitments and the priorities in relation to country systems?

From your perspective, what do you think should be the next steps to develop these opportunities?

]]>Sun, 04 Dec 2011 20:44:00 GMTPreparing for the HLF at Busan and Beyondhttp://www.unpcdc.org/home/forum/oecd-dac-procurement-task-force/2011/12/preparing-for-the-hlf-at-busan-and-beyond.aspxBusan‘s implications for using and strengthening country systems:
A question of using potential!

During the Busan HLF-4, the Heads of State, ministers and representatives of developing and developed countries, heads of multilateral and bilateral institutions, and representatives from public, civil society, private, parliamentary, local and regional organizations have acknowledged a new partnership for effective development cooperation which is broader and more inclusive than ever before. The new partnership is based on shared principles - namely ownership, focus on results, inclusive development partnership and transparency and accountability -, common goals, and differential commitments for effective international development.

Further to our considerations on the way to Busan, the outcome document now confirms the central role that strengthening and using country systems plays in this new approach to development and inclusive partnership: using and strengthening developing countries’ systems remains central to our efforts to build effective institutions. All actors in development are encouraged to build on respective commitments which were set out in the Paris Declaration and Accra Agenda for Action. These include two central aspects: (1) the use of country systems as the default approach for development co-operation in support of activities managed by the public sector; (2) joint country system assessments, using mutually agreed diagnostic tools, which serve as a basis for decisions in how far country systems can be used by providers of development co-operation. In case the use of country systems is not possible, joint measures and assistance for strengthening these systems should be provided.

However, the findings from the HLF-4 in Busan take the importance of country systems to a level beyond what was recognized in Paris and Accra: it is stated explicitly in the outcome document that “the use and strengthening of country systems should be placed within the overall context of national capacity development for sustainable outcomes.” Also, it is agreed that by 2013, greater use will be made of country-led co-ordination agreements. Last but not least, the importance of effective institutions and policies are considered essential elements for sustainable development, and should be strengthened further, alongside policies and practices. The aim is to facilitate the leveraging of resources by developing countries. In this regard, the disputed topic of risk management is approached as well: developing countries’ efforts and plans to strengthen core institutions and policies will be supported through approaches that aim to manage – rather than avoid – risk, including through the development of joint risk management frameworks with providers of development co-operation.

These findings constitute a valuable basis for our continued work towards strengthening and using country systems. And while there is now real potential to making the desired progress in a joint approach which includes a broader range of actors from governments, the public and private sector, as well as representatives from the civil society than ever before, it is time to reflect and ask ourselves: How can we bridge the gap between theory and practice? In short: How can we use the potential of this new and inclusive partnership to making a sustainable contribution to achieving our goals in strengthening and using country systems – especially for those countries which need it the most?
]]>Fri, 02 Dec 2011 23:04:00 GMTProcurement Capacity Development Guidelines OECD/DAC Procurement Task Forcehttp://www.unpcdc.org/home/forum/oecd-dac-procurement-task-force/2011/12/procurement-capacity-development-guidelines-oecddac-procurement-task-force.aspxA Practical Guide to Transforming Procurement Systems:

The first draft of the guide to transforming procurement systems is being finalized in advance of the OECD DAC Procurement Task Force Working Group meeting in early October. The target audience for the guide will be partner countries. A number of good resource materials, short case studies and tools have been included in the draft guide from different organizations and regions.

There is still scope to include further resource materials, short case studies, frameworks, papers and tools etc. from different partner countries or development partners. If you have any relevant materials that you think would add value kindly share the soft copy and/or link with Rasmus Jeppesen rasmus.jeppesen@undp.org or post a link below with a short description.

These could cover any or all of the following subjects:

• What is public procurement
• The strategic importance procurement to a governance system
• Conceptual frameworks the conceptual understanding of Capacity Development (CD)
• Change processes
• Elements of change in the context of public procurement
• Approaches to designing & conducting procurement assessments
• Approaches to analyzing aspects of the overall country context that have an impact on public procurement systems
• Country Procurement Systems capacity assessment tools or approaches
• Approaches to conducting an assessment at the sector or procuring entity level
• Strategic planning process by identifying capacity assets, gaps, common issues and trends
• Implementation - institutional arrangements and structures
• etc

This guide will be a substantive resource for Strengthening Country Systems so it would be good to be as comprehensive and inclusive as possible.
]]>Thu, 29 Sep 2011 00:10:00 GMTSecond Generation Procurement Reformshttp://www.unpcdc.org/home/forum/oecd-dac-procurement-task-force/2011/12/second-generation-procurement-reforms.aspxSecond Generation Reform - Discussion at Cusco

During the OECD DAC Task Force on Procurement meeting in Cusco, Peru between the 4 and 6 of May the discussions on the second generation of public procurement reform resonated with the post above. This is reflected in the Cusco Declaration “Strong Procurement Systems for Effective States” which recognizes that:
‘efficient and effective public procurement is a fundamental component of good governance and is intrinsically connected and dependent on effective functioning of other parts of the broader public sector framework’[/i">.
In order to sustain and accelerate the achievements it urged for procurement reform to ‘integrate closely with other public sector reforms that impact the performance of the procurement system’[/i">.

In setting the context for discussions at the Task Force meeting it was identified that public procurement is central to public sector management, its profile needs to be raised and linked to other parts of the governance framework. It noted that countries that have are completing the first generation of reform by establishing legal and regulatory frameworks now want to move to new generation of reform. It also identified that guidance on capacity development is needed for strengthening the functions of procurement and creating an enabling environment for sustainable reforms.

Moving from First to Second Generation Reform

The Task Force meeting acknowledged the achievements of the first generation reform in tackling institutional and legislative issues. Presentations and discussions highlighted an increasing need for second generation reform if the concept of ‘value for money’ is to progress. There was recognition that the private sector perspective with a focus on financial sector and market development is important when considering reform. This is different to the public sector perspective which places importance on social development and protecting vulnerable groups and minorities. The approach to ‘value for money’ is country specific and depends on both internal actors who are directly involved in the procurement process and external actors who can help improve the quality and effectiveness of the procurement system. The external factors are set out very clearly in the above post.

The Task Force meeting also considered a number of drivers of procurement reforms, these include; i) the changing nature of procurement it is no longer just a transaction it is becoming a policy tool and; ii) trading agreement lead to recognition that other countries do not have compatible systems, economic unions are important to standardize systems.

Achievements of the first generation reform have focused mainly on legal and institutional, (MAPS pillar 1 Legislative and Regulatory Framework and pillar 2 Institutional Framework and Management Capacity). The first generation reforms were necessary but not sufficient. In addition to legislation and having institutions in place other reforms are progressing at different rates including; i) standard bidding documents; ii) anti-corruption agencies and legislation; iii) establishing National Procurement Agencies; and iv) the use of electronic approaches to publish key docs. Procurement capacity development has been doing some useful things but does not go far enough and needs to go further.

Second Generation Reform

The Task Force meeting discussed that MAPS pillar 3 (Procurement Operations and Market Practices) and pillar 4 (Integrity and Transparency of the Public Procurement System) now require a stronger focus to address the following challenges: i) the difficulty in attracting and retaining trained and competent procurement staff, this is the case in LDCs, MICs and Developed countries where better salaries and condition are available in private sector; ii) insufficient oversight mechanisms; iii) lack of prosecution of corruption cases; iv) the recommendations of audit reports not being followed through; v) the lack of an effective complaints mechanism; the lack of statistical information making it hard to measure performance; and vi) late payments and the lack of access to credit by the private sector. Harmonizing the reforms and responding to different demands such as completion generates conflicting forces.

Developing the capacity to address the challenges in pillars 3 & 4 depends on other sectors and goes beyond procurement. The second generation reforms needs political engagement and support and will need prioritize and sequence reform in; i) civil service reform to attract and retain competent staff; ii) professionalization of procurement specialists; iii) providing ‘whistle blower’ protection; and iv) stronger and more independent institutions e.g. audit not being part of Ministry of Finance. This will need to be conducted in parallel with judicial and legal reforms that has clear sanctions and enforcement. As well as boosting the financial sector and private sector so that money can be borrowed more cheaply and easily.

Opportunities for Second Generation Reform

The second generation reforms provide a number of opportunities including: i) generate internal and external controls; ii) a stronger roles for the private sector and CSOs in delivery, regulatory and control; and iii) a move to holistic reforms supported by capacity development plans that are prioritized and sequenced. This will require; i) sufficient financial support for public procurement reform; and ii) the OECD DAC Task Force and partners can ensure that complimentary capacity development approaches and guidance is in place. One of the principles going forward is that strengthening procurement country systems has to be based on trust, which can be built by engagement and involvement of stakeholders.

Capacity Development for Second Generation Reform

The production of the Task Force Procurement Capacity Development Guidelines provides an opportunity to consider how to provide guidance on the second generation reforms and reflect emerging good practice.
]]>Sat, 21 May 2011 09:11:00 GMTRquest for input to a procurement bottleneck studyhttp://www.unpcdc.org/home/forum/oecd-dac-procurement-task-force/2011/12/rquest-for-input-to-a-procurement-bottleneck-study.aspx
My colleague, Todd Dickens (PATH), and I are seeking your input to a procurement bottleneck study contracted by the USAID/DELIVER Project.

Procurement bottlenecks in developing country health systems often result in program crippling shortages and stock-outs. Family planning, immunization, and HIV/AIDS programs are especially vulnerable. Delays also harm programs that dispense essential drugs, malaria and TB medicines, and or need laboratory supplies and equipment.

As part of their ongoing work in health logistics, PATH, on behalf of the USAID/DELIVER Project, has undertaken an activity that proposes to identify and analyze case studies of country situations where procurement problems/bottlenecks have been successfully overcome or where current interventions are showing positive results. While procurement of health commodities at the central/government level is the main focus, stories from other sectors and levels will be useful.

Interventions to address procurement challenges fall into four main categories:
• Policy, legal and structural change
• Long term capacity building
• Medium term measures such as embedding expert personnel
• Short term coping/resolution of immediate, specific problems

The objective of this study is to provide insight to other countries seeking to resolve their own bottlenecks. While there is a growing body of high-level procurement studies and a strong focus on long term capacity building, the value-added feature of our work is inclusion of successful strategies and practical ways the “little guy” can cope with an immediate, specific procurement problem.

We are hoping to find people who are willing to share stories of procurement bottlenecks that were successfully addressed, either their own or ones they know about. Imagine my excitement when I found the following in the “key resources” section of PCDC’s website:

(Excerpt from “Summary Minutes of May 2010 First Meeting of DAC Task Force on Procurement)

The OECD/DAC Global Partnership on Country Systems was created following the High Level Forum in Accra in 2008. It is co-chaired by the USA and Ghana and draws on the work of the Task Forces on Procurement and Public Financial Management. In response to partner country requests for political and technical support to take action on the opportunities and constraints regarding strengthening and using country systems, the Global Partnership has supported three Country Systems Initiatives in Ghana, Malawi and recently in Mali. Phase I of the Initiative involves a dialog between the Government and its ministries and civil society and with donors and development partners to identify the constraints and opportunities in strengthening and using country systems. Phase II, about to start in Ghana, involves the Government and its stakeholders discussing concrete steps to reduce bottlenecks. Phase III will involve implementing these concrete steps.

Nine months have passed since the DAC Task Force meeting on procurement and we are very interested to learn how this effort is progressing. Can anyone provide an update on this? (If necessary, country identities can be kept confidential.)

We would be most grateful for your input, ideas and referrals to others who might be willing to share relevant success stories and information.

Best regards,
Dian Woodle
Independent Consultant
woodled@olypen.com

For more information about the PATH USAID/DELIVER study, two documents are attached: 1) a table of common bottlenecks and 2) a set of definitions.
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