Monitoring Procurement: The Small and the Big Way THE WORLD BANK E-Government: Impact on Transparency and Anti-Corruption January 28, 2002 Monitoring Procurement: The Small and the Big Way Director Managing Partner Miguel Schloss

Procurement E-System Enhance efficiency and effectiveness Increase transparency and probity Empower civil society Strengthen public management

Procurement: Monitoring the Small Way: Public Surveillance

Procurement Monitoring Price Comparisons Professional Coordination Homogenous products Primary data (invoices, contracts) Information analysis (price ranges, averages) Bulletin, Publications, Dissemination Monitoring Results

Procurement Monitoring Public Hearings Meeting with Stakeholders, including media Levelling Playing Field; Technical Experts Agenda, Trade-Offs Assessment, Discussion, Minutes Explicit Resolution of Issues

Procurement Monitoring Integrity Pacts No-bribery commitment by bidders Commitment of government to prevent extortion and acceptance of bribes Disclosure of payments Sanctions against bidders who violate their no-bribery commitment Involvement of civil society in monitoring bid evaluation, award decision process and implementation of the contract

Procurement Monitoring Evaluation Strategic positioning (vulnerable areas). State-of-the-art expertise. Constituency grounding. Opening to outside bidders. Watch up-scaling implications Risks of bureaucratization Focus on systemic issues Safeguards for whistleblowers, arbitration vehicles.

Procurement: Monitoring the Big Way: The Policy & Institutional Route

Bribery by Business Sectors

Ominous Correlations: Oil Economies Why has this happened? This slide and the next, titled "Ominous Correlations", shed some light on the problem. The chart above, based on ongoing research at the World Bank, plots performance against a variety of governance indicators for 155 countries. The vertical axis shows the likely range of the indicators for each country, and the mid-points the most likely value*. A very clear correlation emerges. Oil exporting developing countries are clustered heavily in the bottom one-third of all countries included in the sample. We have seen that oil wealth is often inversely correlated with growth and development. This chart suggests strongly that oil wealth is also inversely correlated with governance. The implication is that oil erodes governance which in turn limits growth. _______________________________ *Several hundred indicators are used, primarily qualitative, produced by a range of organizations…commercial risk rating organizations, multilateral agencies, think-tanks, NGOs…Topics/indicators include political stability, business climate, perceptions of corruption, quality of public service, etc. For more information, visit www.worldbank.org/wbi/governance Source: World Bank Institute

Potential Savings

Government Involvement and Levels of Inefficiency

Petroleum Import Dependency

No “one size fits all” e-government solutions Preconditions: Actions require ownership: demand and constituencies for accountability, responsiveness, partnerships. Performance requires contestability: checks and balances, plurality and competition, emancipation/empowerment, removal of governments and private sector monopolies. Sustainable action requires incentives: motivation, alignment between public and individual wellbeing. Change in mindset towards service orientation; processes and ICT are means, not ends; piercing bureaucratic barriers.