11 August 2015

Study shows nine out of 10 countries use procurement to support social objectives

The new OECD study Government at a Glance 2015 has found that 94 percent of OECD countries are using public procurement to advance social and economic objectives. The report goes on to state that a significantly lower proportion measures the success of these procurement measures in achieving secondary objectives, with only 69 percent tracking the results of green procurement policies and 39 percent measuring the impact of policies to foster greater innovation.

Insufficient incentives, the lack of necessary financial resources, and the lack of a measurement framework are cited as factors in this lower showing. The report states that in 2013, 29 percent of total public expenditure was spent on procurement, with public procurement accounting for an average of 12.1 percent of spending relative to GDP.

The uptake of e-procurement was also found to face serious challenges, such as poor IT skills within procurement agencies, a lack of innovative organisational structure, and a lack of knowledge about the economic benefits of pursuing online solutions.

For more information, visit Supply Management.