World Bank launches procurement review

3 July 2012

The World Bank is undertaking a review of its procurement policy and procedures between 2012 and 2014, which could have significant consequences for developing countries. The Bank launched the review with the publication of a discussion paper at the end of March. Worldwide consultations with stakeholders will take place between May 2012 and September 2013. The review aims to “ensure that the Bank’s procurement policy and its procedures remain relevant to today’s world and they continue to support development results”.

According a September 2011 report by European NGO network Eurodad, around $69 billion, 50 per cent of official development assistance, are spent annually “on procuring goods and services for development projects from external providers. Procurement practices determine which private firms from which countries are awarded aid funded contracts” but it also determines who gains most of the benefits in terms of job creation, income opportunities and other capacities. The report calls for “smarter procurement” including untying aid and the use of country procurement systems as agreed in the 2005 Paris Declaration on Aid Effectiveness and the 2008 Accra Agenda for Action.