The Public Market Reform in Chile: ChileCompra Felipe Goya Goddard CEO ChileCompra

ICT Based Check & Balance System Public Market Public opinion Public Procurement Tribunal Government General Comptroller Office Congress Agents

Improved Regulation Public Procurement Law

Procurement Policies Transparency InnovationAccess

Main Services Electronic Catalogue ChileCompra Express Business Centers Training New Regulatory Framework Electronic Register of Official Suppliers of the State of Chile Electronic Platform Studies and Data Mining

5.7 bids per process visitors per month contracting officers 900 public agencies Procurement Orders Business opportunities Transactions worth GDP 3.5% Main Outcomes (2008) firms doing business Savings up to 5% in the national procurement budget 38% SME participation

A Public Management Reform

2003: Opportunity Window Kingdon (1995) “Regardless the degree of development, public procurement is a risk area for corruption” (Thai, 2001). Transparency and corruption scandals in Solutions Politics Problems

Political Support The Ministry of Finance lead the Reform No lack of resources Public management reform Sticks and carrots Objectives are steady, understood and shared by every stakeholder Managers in charge are well paid and have sound professional record Top Down Implementation

Main Obstacles

Historic Monopolies

Digital Divide

Resistance

A Few Outcomes

Better Government Loncomilla bridge collapse as an example of poor governance

Trust in Chile and in its Institutions

“One of the best tools a government can use to edge its constituents online is to leverage its buying power …… Chile’s government procurement system, ChileCompra, is a centralized procurement and contract system …….” E readiness 2007 rankings, Economist Intelligence Unit Bridging the Digital Divide

The Public Market Reform in Chile: ChileCompra Felipe Goya Goddard CEO ChileCompra